Shares of Hims & Hers tumble 23% after FDA says semaglutide is no longer in shortage

Shares of Hims & Hers Health tumbled more than 23% on Friday after the U.S. Food and Drug Administration announced that the shortage of semaglutide injection products has been resolved. Semaglutide is the active ingredient in Novo Nordisk's blockbuster weight loss drugs Wegovy and diabetes treatment Ozempic. Those medications are part of a class of drugs called GLP-1s, and demand for the treatments has exploded in recent years. As a result, digital health companies like Hims & Hers have been prescribing compounded semaglutide as an alternative for patients who are navigating volatile supply hurdles and insurance obstacles. Compounded drugs are custom-made alternatives to brand-name drugs designed to meet a specific patient's needs, and they can be produced when brand-name treatments are in shortage. The FDA doesn't review the safety and efficacy of compounded products. Hims & Hers began offering compounded semaglutide to patients in May, and it owns compounding pharmacies that produ ... Read full article.