Shares of Hims & Hers Health plummeted 21% following the FDA's announcement that the Ozempic and Wegovy drug shortages have ended. The company, which benefited from compounding these medications during the shortage, can no longer manufacture them. This development signals a downturn for Hims & Hers, as the sudden influx of patients seeking cheaper compounded versions during the shortage will fade. However, there remains potential for the company's stock to rebound if future shortages arise, necessitating close monitoring of its market performance.
"Just this morning, the US FDA said Novo Nordisk's popular diabetes and weight loss drugs Ozempic and Wegovy are no longer in shortage. That means Hims & Hers Health, which markets compounded versions of the two treatments, can no longer manufacture exact copies of the drugs as they did during the shortage."
"During the shortage, patients flocked to compounders, which were allowed to make copies of semaglutide since it was on the shortage list. Patients were also drawn to compounded semaglutide since it was cheaper than the brand-name version, which carries a list price of about $1,000 a month."
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