Shares of Hims & Hers Health Inc. (HIMS) soared 5.14% on Monday after President-elect Donald Trump nominated Dr. Marty Makary to lead the Food and Drug Administration (FDA), boosting optimism about the company's prospects for selling compounded versions of popular weight-loss drugs.

Makary, a surgeon and chief medical officer for telehealth provider Sesame, has ties to the compounding pharmacy industry that offers alternatives to brand-name drugs like Novo Nordisk's Wegovy. Hims & Hers is among the telehealth companies benefiting from surging demand for compounded versions of Wegovy due to shortages and high costs of the branded drug.

With Makary's nomination, investors are betting that the new administration could adopt a more favorable stance toward compounding pharmacies, potentially allowing them to expand production of alternatives to expensive drugs. This could further boost demand for Hims & Hers' compounded offerings and drive growth for the company.