Hims & Hers (HIMS.US), a company specializing in selling compounded medications, is experiencing an approximately 8% decline today following a court's rejection of a preliminary injunction request concerning the FDA's decision to remove Zepbound (Eli Lilly's weight-loss drug) from the shortage list.
Under U.S. law, companies can offer copycat versions of brand-name drugs as long as they remain on the shortage list. Therefore, the FDA’s decision has significantly limited the operations of such companies, leading the Outsourcing Facilities Association (OFA) to file a lawsuit against the FDA.
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Create account Try a demo Download mobile app Download mobile appThe court’s decision to deny OFA’s request for a preliminary injunction, which would have allowed companies to continue producing lower-cost drug alternatives, is a negative signal for the sector. This is reflected in Hims & Hers' stock price, which has dropped to its lowest level since early February 2025.
The FDA’s decision already led to an 11% decline in Hims & Hers’ stock in December. Today, its shares are down nearly 8%.Source: xStation
