Telehealth company Hims & Hers Health (HIMS) is navigating a chaotic week defined by a sharp regulatory pivot and a strategic expansion into oncology screening. The stock has seen significant volatility following the abrupt withdrawal of a new weight-loss offering, even as the company attempts to bolster its portfolio with advanced cancer detection technology.
Regulatory Headwinds Force a Reversal
The turbulence began shortly after Hims & Hers announced a bold entry into the weight-loss market last Thursday. The company revealed plans to offer a compounded semaglutide pill—a generic alternative to Novo Nordisk’s popular Wegovy—at a highly competitive price point. The proposed oral medication was set to launch at just $49 for the first month and $99 thereafter, a steep discount compared to the brand-name list price which often starts around $149.
The initiative, however, faced immediate resistance. Within 24 hours of the announcement, the U.S. Food and Drug Administration (FDA) signaled its intent to restrict the use of GLP-1 active ingredients in compounded drugs, citing safety, quality, and legal concerns. Concurrently, Novo Nordisk threatened legal action, describing the compounded offering as an unlawful imitation of its patented medication and arguing that patients should be protected from unapproved variants.
Facing mounting pressure from both regulators and the pharmaceutical giant, Hims & Hers reversed course by Saturday. In a statement posted to the social media platform X, the company confirmed it would pause the offering following discussions with industry partners. While the company reiterated its commitment to affordable healthcare, the swift retraction suggests the regulatory risks were too high to ignore.
Market Reaction and Stock Performance
The backtracking had an immediate impact on investor sentiment. Hims & Hers shares came under heavy pressure on Monday, plummeting 16.03% to close at $19.33 on the NYSE. Conversely, the news buoyed competitors; Novo Nordisk shares rose approximately 5.5% in Copenhagen, stabilizing after the initial threat of low-cost competition was removed.
Prior to the crash, the stock had seen upward movement, trading as high as $27.20 on Wednesday. However, the technical indicators now paint a bearish picture. The stock is currently trading significantly below both its 20-day and 100-day simple moving averages, signaling a downward trend.
Momentum indicators further reflect the uncertainty. The Relative Strength Index (RSI) sits deep in oversold territory at 29.27, while the MACD remains below its signal line, indicating sustained bearish pressure. Despite the sell-off, recent analysis from Benzinga Edge highlights a dichotomy in the company’s fundamentals: while Hims & Hers scores highly on growth potential (87.86), it ranks poorly on value (6.39) due to a steep premium relative to its peers.
Expansion into Cancer Screening
In an effort to diversify its offerings beyond the volatile weight-loss sector, Hims & Hers is simultaneously moving forward with a partnership with GRAIL Inc. The company announced it will provide customers access to “Galleri,” a multi-cancer early detection blood test.
The Galleri test is designed to screen for signals associated with over 50 types of cancer, many of which—such as pancreatic or ovarian cancer—lack recommended routine screening protocols. According to the company, the test can be taken annually and is capable of predicting the origin of a cancer signal within the body.
Hims & Hers CEO Andrew Dudum stated that the launch is aimed at closing gaps in proactive care and expanding access to advanced medical technology. Customers will be able to add the test to existing plans starting Wednesday, with a $250 discount off the list price. Both companies emphasized that this offering is intended to complement, not replace, standard cancer screenings.
As the company navigates the fallout from its GLP-1 retraction, investors will be watching closely to see if the expansion into preventative oncology can help stabilize the stock and restore momentum in the coming quarters.