Hims & Hers Health (HIMS) Stock Plummets Amid FDA Announcement and Market Downgrades
Hims & Hers Health (HIMS) experienced a significant stock decline today, influenced by recent FDA announcements and analyst downgrades.
FDA Resolves Weight-Loss Drug Shortages
The U.S. Food and Drug Administration (FDA) announced the resolution of shortages for popular weight-loss and diabetes medications, including Novo Nordisk’s Ozempic and Wegovy. This development adversely affects Hims & Hers Health, which had been producing compounded versions of these drugs during the shortage. Following the FDA’s announcement, Hims & Hers’ stock plunged nearly 20%, while shares of Novo Nordisk rose by 5.1%.
Analyst Downgrades Impact Stock Performance
In addition to the FDA’s announcement, Hims & Hers Health faced analyst downgrades that further influenced its stock performance. On February 19, 2025, Morgan Stanley downgraded the company’s rating, leading to a 5.9% drop in share price.
TechDows Earlier, on January 11, 2025, Citigroup also downgraded Hims & Hers Health from a neutral to a sell rating, adjusting the price target to $25.00.
Market Reaction and Future Outlook
Today’s developments have led to increased volatility in Hims & Hers Health’s stock, with a notable decline observed in trading. The company’s reliance on compounded medications during drug shortages has been a significant revenue stream, and the FDA’s resolution of these shortages poses challenges to this business model. Investors are advised to monitor upcoming earnings reports and market analyses to assess the company’s strategic responses to these changes.
