Mon Nov 25 14:40:00 UTC 2024: ## Telehealth Stock Hims & Hers Sees Rollercoaster Ride, Driven by Weight Loss Drug Shortages and Amazon Competition

**NEW YORK, November 6, 2024** – Hims & Hers Health (NYSE: HIMS), a telehealth platform, has experienced significant stock price volatility this month, driven by a confluence of factors including weight loss drug shortages and increased competition from Amazon.

After a 30% drop from $28 to $19 between November 13th and 15th, fueled by Amazon’s launch of a competing, lower-priced service, HIMS stock has rebounded to $24, a 14% increase in a week. This recent surge is largely attributed to the U.S. FDA’s delay in confirming a shortage of Eli Lilly’s weight-loss drug, Mounjaro (Zepbound). This shortage benefits Hims & Hers, which offers generic alternatives.

Despite the recent volatility, HIMS stock is up a remarkable 167% year-to-date, significantly outperforming the S&P 500’s 26% gain. However, the company’s long-term performance has been erratic, with annual returns ranging from -55% to 39% since 2021. This contrasts sharply with the more stable performance of the Trefis High Quality Portfolio.

Hims & Hers’ success is largely tied to the booming demand for GLP-1 weight-loss drugs. The company has seen subscriber numbers nearly quadruple since 2021, reaching over 2 million, and average revenue per subscriber increase from $51 to $60. After reporting operating losses in previous years, the company achieved profitability in 2023.

However, the future remains uncertain. While the FDA’s decision on the Zepbound shortage is expected by December 19th, Eli Lilly is working to increase production. Once the shortage ends, Hims & Hers’ reliance on generic GLP-1 drugs will diminish, necessitating growth through other offerings, including a planned 2025 launch of a generic version of Novo Nordisk’s liraglutide.

Analysts believe HIMS stock, currently trading at 4.4x trailing revenues, is fully priced at $24, citing Amazon’s competitive pressure and the potential end of the Zepbound shortage as headwinds. The company’s future success hinges on its ability to diversify its offerings and maintain growth beyond the current market for generic weight-loss medications.

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