Karishma Vanjani

Hims & Hers Health stock tanked Friday after a U.S. regulator said popular weight-loss and diabetes drugs were no longer in shortage. The move could lessen demand for the copycat version that Hims & Hers sells.

Hims & Hers has been selling compounded GLP-1 shots, the class of medicines behind the blockbuster obesity drugs sold by drugmakers Eli Lilly and Novo Nordisk.

The U.S. Food and Drug Administration Friday said that shortages of Ozempic and Wegovy, marketed by Novo Nordisk, have been resolved. Semaglutide, an active ingredient for anti-diabetic and obesity medication, was also listed as resolved. In other words, the current supply of the drugs can meet present and future demand, according to the FDA.

Shares of the telehealth company cratered 22% Friday, on pace for the largest one-day percent decrease since Nov. 14, 2024, when they fell 24.46%.

The FDA has already declared that there's no more U.S. shortage of Lilly's weight-loss drug Zepbound.

Hims sells a compounded version of semaglutide, which is the medicine Novo Nordisk sells under the brand name Wegovy. Compounded GLP-1 medications aren't approved by the FDA but "might be appropriate if a patient's medical need cannot be met by an FDA-approved drug, or the FDA-approved drug is not commercially available," the regulator has previously said.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 21, 2025 13:19 ET (18:19 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.