What goes up can come down. Investors who jumped on the Hims & Hers Health (NYSE: HIMS) bandwagon have experienced this pain first-hand.
Shares of the health and wellness platform operator skyrocketed more than 670% between Jan. 1, 2024, and Feb. 19, 2025. However, this sizzling momentum came to a screeching halt in recent weeks. Hims & Hers stock plunged more than 50% at one point. Is this once-high-flying healthcare stock a smart buy now?
Much of the excitement over Hims & Hers has been connected to the company’s sales of compounded versions of GLP-1 inhibitor semaglutide. Novo Nordisk markets semaglutide as a treatment for type 2 diabetes under the brand name Ozempic and for treating weight loss under the brand name Wegovy.
Hims & Hers was able to sell compounded semaglutide only because of a U.S. Food and Drug Administration (FDA) loophole that allowed such sales when a national shortage of the drug existed. However, the FDA declared on Feb. 21, 2025, that this shortage was over.
CFO Oluyemi Okupe confirmed on Hims & Hers Health’s fourth-quarter earnings call a few days after the FDA announcement that semaglutide “will not be offered on the platform after the first quarter.” The company’s guidance of $725 million in full-year 2025 from its weight-loss business excluded semaglutide sales.
Despite the shellacking Hims & Hers Health stock took after the FDA’s decision, there is some good news for investors. For one thing, the stock has rebounded somewhat after bottoming out. That could be a sign that the worst is over.
Hims & Hers’ revenue guidance for 2025 was also quite good when put into context. The company projects revenue of between $2.3 billion and $2.4 billion. The midpoint of that range reflects a year-over-year increase of 59%.
Over two-thirds of Hims & Hers’ revenue comes from products unrelated to weight loss. Men’s dermatology, women’s dermatology, mental health, and sexual health are all expected to generate sales this year of more than $100 million. Dermatology is an especially fast-growing area, with the number of subscribers…
..
