Hims & Hers Health (HIMS, Financial), a provider of affordable weight-loss medications, saw its stock price soar over 20%, reaching $30.57, surpassing its previous record high. This surge was driven by speculation that the company could benefit from Marty Makary's potential appointment as the head of the U.S. Food and Drug Administration (FDA). Makary, an executive at Sesame Inc., is associated with the sale of GLP-1 weight-loss drugs, similar to those offered by Hims & Hers.
Hunterbrook Media, an institution known for its critical stance on short sellers, highlighted Makary's nomination as a positive development for Hims & Hers. Their hedge fund, Hunterbrook Capital, shifted its position from shorting HIMS in June to now supporting the stock. This change was influenced by the company's focus on online sales of GLP-1 injections.
GLP-1 drugs, such as Eli Lilly's tirzepatide and Novo Nordisk's semaglutide, are crucial in diabetes treatment and weight loss but face supply shortages. This situation presents market opportunities for companies like Hims & Hers, which offer similar or compounded products. As of last Friday, HIMS stock had surged over 184.6% this year, potentially marking its best annual performance since going public.
On November 21, HIMS stock rose by 10.83% following court documents indicating that the FDA needed more time to decide on removing tirzepatide from the shortage list. This delay provides Hims & Hers with further market opportunities, as semaglutide remains on the FDA's "currently in shortage" list. Notably, Hims & Hers does not sell compounded tirzepatide products.
Despite the positive outlook, Wall Street remains cautious. According to Bloomberg data, over half of the analysts rate HIMS stock as "hold" or "sell," while around 40% recommend buying.
