Hims & Hers Health, Inc ( HIMS ) is facing heavy selling pressure Thursday morning as the U.S. Food and Drug Administration’s (FDA) ban of compounded drugs with semaglutide takes effect.

What To Know: Semaglutide, the active ingredient in popular weight-loss drugs like Ozempic, can no longer be offered in compounded drugs by outsourcing facilities as the agency’s grace period comes to a close on Thursday.

Hims & Hers Health ( HIMS ) shares are under pressure as the firm sells cheaper versions of popular weight-loss drugs, known as compounded drugs. Regulators allow compounded versions of drugs to enter the market to meet demand when there is a shortage.

The FDA announced earlier this year that semaglutide had been removed from the drug shortage list with supply becoming sufficient to meet current and projected demand. Hims & Hers Health ( HIMS ) stock fell more than 20% in February after the FDA removed semaglutide injections from the list. The company generated over $225 million in revenue in 2024 from its GLP-1 product.

Hims & Hers Health ( HIMS ) reported financial results for the first quarter earlier this month and saw its shares surge as the company beat estimates and guided for full-year sales of $2.3 billion to $2.4 billion versus estimates of $2.32 billion, according to Benzinga Pro.

“We’re building a platform that puts the individual at the center of every decision and others are taking notice. Over time, we expect wider collaboration across the industry, inclusive of pharmaceutical players, innovative leaders in diagnostic and preventative testing, and world class providers. We believe this will strengthen our ecosystem and position us to curate a best-in-class offering that can reach tens of millions of people,” CEO Andrew Dudum said in the earnings release.

The company also introduced longer-term targets including expectations to reach at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030. Hims & Hers had a total subscriber base of nearly 2.4 million at the end of the first quarter.

HIMS Price Action: Hims & Hers Health ( HIMS ) shares were down 7.47% at $53.67 at the time of publication Thursday, according to Benzinga Pro.

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