Hims & Hers Health Inc. (HIMS) saw its shares surge over 5% in Friday's intraday trading session amid growing optimism that the U.S. Food and Drug Administration (FDA) could reverse its previous decision to restrict the company from selling its version of Eli Lilly's obesity drug Tirzepatide.

The FDA had recently removed Lilly's Tirzepatide from a shortage list, effectively banning compounded drugmakers like Hims & Hers from selling their versions of the drug. However, the agency is now facing litigation challenging this decision and has extended the deadline for a joint status report on the drug's supplies until December 19th.

According to analysts at Truist Financial, this extension "increases the likelihood of the FDA reversing its decision," given the lobbying efforts by Hims & Hers and other compounded drugmakers. The firm maintains a "Hold" rating on HIMS stock but notes the potential for further upside if the FDA's decision is indeed reversed.