Hims & Hers: The Truth About GLP-1s

Here's what's really going on with GLP-1s.

Author

Travis Hoium
October 05, 2024

Shares of Hims & Hers have been on a rollercoaster over the past few months, first popping on news that GLP-1s would be offered (which we knew was coming) and now on the news that GLP-1s — as they’re currently sold — may not be here for long (which we also knew was coming).

This week, shares dropped over 10% on news that a 60-day time clock to stop selling compounded GLP-1 has started.

But this isn’t going to impact Hims & Hers! It’s an entirely different product that’s affected. Here’s what’s going on.

What Is Compounding Anyway?

A compounded drug is a way to make the drug in a pharmacy outside of the traditional branded drug supply chain. These are allowed when there’s a shortage and must be made in a specific way, which I covered in this video.

Here’s what the FDA has to say:

Why do some patients need compounded drugs?

A drug may be compounded for a patient who cannot be treated with an FDA-approved medication, such as a patient who has an allergy to a certain dye and needs a medication to be made without it, or an elderly patient or a child who cannot swallow a tablet or capsule and needs a medicine in a liquid dosage form. Practitioners in hospitals, clinics, and other health care facilities sometimes provide compounded drugs to patients when an FDA-approved drug is not medically appropriate to treat them. In these situations, compounding can serve an important patient need. 
 
Compounders also may prepare compounded versions of a drug on FDA’s drug shortages list if the compounded drug meets certain conditions detailed in federal law.

It’s this shortage list exception that Hims & Hers is using to sell a GLP-1, semaglutide.

The GLP-1 Compounding Situation

What changed this week was the shortage of tirzepatide, or Eli Lilly’s GLP-1 Zepbound, was resolved. You can see that in the first bullet point below, which is a screenshot from the FDA site announcing the change.

Subscribe to Premium to read the rest.

Become a paying subscriber of Premium to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

  • • Exclusive access to all premium content
  • • 1-2 company deep dives each month
  • • Timely updates on Asymmetric Universe stocks
  • • Asymmetric Investing portfolio (including trades before they're made)

Reply

or to participate.