-85% p.a.
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Introduction to our strategy no description yet Quick Summary Metric Value Return % p.a. -85 Days active 427 …
tickers: HIMS
source: Motley Fool
tickers affected by this
| ticker | polarity | why? |
|---|---|---|
| HIMS | negatively | The ticker HIMS will be negatively affected because the court ruling could lead to an end of the tirzepatide shortage, which would limit the company’s ability to produce and sell its own GLP-1 weight loss drugs, potentially reducing future sales and profitability. Additionally, the uncertainty surrounding the FDA’s actions and further rulings could lead to increased volatility in the stock price. |
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summary
Hims & Hers Health Stock Plummets on Texas Court Ruling
Hims & Hers Health (NYSE: HIMS) stock experienced a significant decline on Thursday morning, falling 9.2% by 11:40 a.m. ET. The drop was triggered by a ruling from the U.S. District Court for the Northern District of Texas in a lawsuit related to GLP-1 weight loss drugs. The implications of the ruling are not favorable for Hims & Hers’ business.
The Lawsuit and Its Implications
The lawsuit in question was filed by the Outsourcing Facilities Association (OFA) against the FDA. The OFA aimed to prevent the FDA from declaring an end to the shortage of tirzepatide, the active ingredient in Eli Lilly’s Zepbound weight loss drug. This shortage allows companies like OFA and Hims & Hers to produce and sell their own GLP-1 drugs. However, the court’s ruling means that the FDA can now declare the shortage over, potentially halting Hims & Hers’ ability to sell these drugs.
Potential Impact on Hims & Hers
The ruling raises concerns that the FDA could soon end the shortage of tiracpetide, mirroring its recent decision to end the shortage of semaglutide, the active ingredient in Novo Nordisk’s Ozempic. If the FDA does declare an end to the shortage of tirzepatide, Hims & Hers’ future sales of GLP-1 drugs could be severely impacted, leading to a significant drop in stock value.
Market Reaction
The news has already led to a 15.9% decrease in Hims & Hers’ stock price, highlighting investor concerns about the company’s future in the weight loss drug market. The ongoing lawsuit and the potential for further FDA rulings add to the uncertainty surrounding Hims & Hers’ stock performance.
