Hims & Hers Health, Inc ( HIMS ) shares are trading lower Thursday after Hunterbrook issued a short report on the stock.

What Happened: Hunterbrook released a bearish report on Thursday, alleging Hims & Hers sells knockoff GLP-1 weight loss drugs and relies on a single supplier with previously unreported ties to fraud and bankruptcy.

Benzinga reached out to Hims & Hers Health ( HIMS ) for comment on the report and received a response from a spokesperson highlighting a post on the company’s commitment to customer safety and another post on how the company is delivering safe access to GLP-1 injections.

Hunterbrook alleged that Hims sells injections that are not FDA approved like other big pharma options out there such as Novo Nordisk’s Ozempic and Wegovy. Hunterbrook said the company is able to sell the products through a loophole that allows facilities to sell their own versions of patented drugs during shortages.

Hunterbrook also alleges Hims has partnered with BPI Labs LLC, which it says has a history of FDA scrutiny over potential fraud at the executive level. Hunterbrook noted that one of its media reporters qualified as being eligible for GLP-1 drugs after completing a 4-minute survey with Hims.

The report suggests that Hims could face legal troubles if its “knockoffs” prove to be unsafe or ineffective. Hunterbrook claims a FDA legal expert told its media arm that Hims may have opened itself up to liability with its compounding business.

Hunterbrook operates under two different arms: Hunterbrook Media and Hunterbrook Capital. The former operates as a media outlet publishing investigative and global reporting. The latter arm is a hedge fund, betting on or against some of the stocks on which it reports. Hunterbrook has announced that it has a short position in Hims & Hers Health ( HIMS ) stock.

HIMS Price Action: Hims & Hers Health ( HIMS ) shares were down 9.9% at $19.41 at the time of publication, according to Benzinga Pro.