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HIMS

Hims & Hers Health gain on potential FDA leadership ties

investing.com 25/11/2024 - 16:19 PM

Investing.com — Hims & Hers Health, Inc. (NYSE: HIMS) shares surged by up to 18% Monday, marking its most significant intraday rise since November 11.

The increase followed a report from Hunterbrook Media, part of Hunterbrook Capital, suggesting that the company could benefit from President-elect Donald Trump's nominee for the Food and Drug Administration (FDA) commissioner.

Hunterbrook Capital has shifted its position on Hims & Hers from short to long, indicating a more optimistic outlook on the company's future.

The nominee in question, Dr. Martin Makary, is currently an executive at Sesame, a telehealth company that, like Hims & Hers, sells compounded GLP-1 drugs online.

The potential implications of having an FDA commissioner with direct ties to the industry are significant. Analysts consider this connection a potentially favorable development for Hims & Hers and the broader market of compounded GLP-1 drugs.

Bank of America analysts weighed in on the nomination, noting that while the confirmation of Dr. Makary is not yet certain, his current role could be seen as a positive sign for companies involved in the compounding of GLP-1 products. The FDA's stance on this issue is crucial as it will determine the ability of companies like Hims & Hers to continue selling these compounded medications.

The FDA has recently delayed its decision on the shortage of tirzepatide, a related compound, and is expected to file a status report by December 19 or within seven days following a decision on remand.

The current administration may postpone actions on compounded GLP-1s until the next administration is in place. If the next FDA leader supports the compounding of GLP-1 drugs, it could be advantageous for Hims & Hers and the industry at large.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.




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