Shares of Hims & Hers Health ($HIMS) Stock Surge 30% Digital pharmacy startup Hims & Hers Health ( NYSE:HIMS ) is introducing compounded GLP-1 weight loss injections, which have been gaining popularity due to supply constraints in the market. The company, which offers a range of direct-to-consumer treatments for conditions like erectile dysfunction and hair loss, launched a weight loss program in December but did not include GLP-1 medications such as Ozempic and Wegovy. Customers can access the compounded GLP-1 medications via a prescription from a licensed healthcare provider on the Hims & Hers platform.
Hims & Hers ( NYSE:HIMS ) CEO Andrew Dudum said that the company is "confident" that customers will be able to access a consistent supply of the compounded medications. The company's oral medication kits start at $79 a month, and its compounded GLP-1 injections will start at $199 a month. The company expects its weight loss program to bring in more than $100 million in revenue by the end of 2025.
The GLP-1 market, dominated by pharmaceutical giant Novo Nordisk, has faced supply constraints in recent months as drugs like Ozempic and Wegovy continue to skyrocket in popularity. The FDA does not review the safety and efficacy of compounded products, which are custom-made alternatives to brand drugs designed to meet a specific patient's needs. In a January release, the FDA said patients should not use a compounded GLP-1 drug if an approved drug, such as Wegovy, is available.
Hims & Hers ( NYSE:HIMS ) Health's stock price is doing well, thanks to its strong growth and demand for its core products. It has surged by over 30% this year and by more than 112% this year, giving it a market cap of $3.13 billion.
Hims & Hers Health's ( NYSE:HIMS ) business released data this month showing that its total revenue soared by 46% in Q1 to over $278 million, and its subscribers roared by 41% to 1.7 million. This performance makes it one of the fastest-growing companies in the US.
Hims & Hers ( NYSE:HIMS ) expects revenue growth between $292 million and $297 million in Q2 while the adjusted EBITDA will be between $30 and $30 million. The company focuses on some of the biggest industries globally, including sex, anxiety, weight loss, hair, and skin, each of which has a total addressable market worth billions of dollars. Analysts believe that NYSE:HIMS revenue will jump to over $1.2 billion this year followed by $1.5 billion in 2025, which could help justify its hefty valuation.
