$Hims & Hers Health Inc.(HIMS)$ Just sharing my opinion. The latest dip begun to look attractive. [Smile]
Hims & Hers Health (HIMS) stock has fallen to the $16 range primarily due to intense legal and regulatory pressure surrounding its compounded GLP-1 weight-loss products, compounded by a lawsuit from Novo Nordisk and fears of lost market share.
Here are the specific reasons for the decline:
Lawsuit and Regulatory Pressure: In early February 2026, Novo Nordisk filed a lawsuit against Hims & Hers to permanently ban the company from selling compounded versions of its drugs (such as Ozempic and Wegovy). This followed a direct warning from the FDA regarding "illegal copycat drugs".
Withdrawal of Copycat Product: Hims & Hers announced it would stop selling a specific compounded version of a weight-loss pill that closely mimicked Wegovy, bowing to pressure from federal regulators.
End of Shortage Status: The FDA previously indicated that shortages of semaglutide products (the active ingredient in Wegovy/Ozempic) have been resolved, limiting the legal grounds under which pharmacies can produce compounded alternatives.
Context for the Stock Performance:
Despite these, the company has shown strong year-over-year revenue growth. However, the regulatory noise, lawsuits, and the end of the "GLP-1 gravy train" have caused a major valuation pullback, with the stock losing approximately 50% of its value in early 2026 compared to its prior highs.
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