Weight-Loss Drug Drama: Why Hims & Hers Could Be Facing a Major Supply Crisis

Hims & Hers Health just posted some seriously impressive numbers for the last quarter of 2024. The telehealth company raked in $481.1 million in revenue, nearly double what it made during the same time last year.

Although sales were robust, profits fell short of projections. Earnings per share (EPS) was $0.11, which was 6 cents less than analysts had projected. As a result of growing expenses, particularly in its thriving weight-loss division, the company’s profit margins also suffered, falling from 83% to 77%.

More Customers, More Spending

Despite the earnings miss, Hims & Hers is still growing like crazy. It now has 2.2 million subscribers, a huge jump from 1.5 million a year ago. Not only are more people signing up, but they’re spending more, too.

The average monthly revenue per subscriber jumped to $73, up from $53 last year. That’s a sign that customers are sticking around and seeing value in the company’s products, which now range from hair loss treatments to weight-loss medications.

The FDA Just Threw a Wrench in the Plan

Here’s where things get tricky. The FDA just announced that semaglutide—the active ingredient in weight-loss drugs like Wegovy—is no longer on the drug shortage list. That’s a big deal because Hims & Hers has been selling a compounded version of the drug through pharmacies that make their own formulas.

Now, because the shortage is officially “over,” these pharmacies can no longer produce or sell compounded semaglutide. That means Hims & Hers could run out of supply soon, which would be a major blow to one of its fastest-growing business segments.

Investors didn’t take the news well—the company’s stock plummeted 19.4% in a single day after the announcement.

What’s Next for Hims & Hers?

Even with this challenge, Hims & Hers expects to pull in between $2.3 billion and $2.4 billion in revenue for 2025. The company has big plans to:

• Find new ways to offer weight-loss treatments if compounded semaglutide is no longer an option.
• Expand into new healthcare markets, including treatments for low testosterone and menopause.
• Invest in at-home lab testing to make personalized healthcare even easier for customers.

The Big Picture

Hims & Hers is still in hyper-growth mode, but the FDA’s decision is a serious curveball. While the company has proven it can scale quickly, it now has to navigate a major roadblock in one of its most promising markets.

Investors will be watching closely to see **if Hims & Hers can adapt—**or if this regulatory shake-up will slow down its momentum.