Hims Slumps 40% YTD to $20 After FDA Ban and Lower Q1 Guidance
Hims & Hers shares have slumped 40% YTD to $20, down over 70% from their 52-week high after FDA deemed its copycat weight-loss pills unapproved and a patent suit plus DOJ referral. A March settlement shifts Hims to Wegovy distribution and Q1 revenue guidance of $600M–$625M trails consensus by $28M.
1. Regulatory Crackdown on Copycat Drugs
In early 2026 FDA classified Hims’ low-cost weight-loss pills as unapproved, halting production within days, while Novo Nordisk filed a patent infringement suit and HHS referred the company for DOJ investigation.
2. Settlement and Strategic Pivot
In March Hims settled with Novo Nordisk, ceasing compounded drug manufacturing and becoming a distribution partner for branded Wegovy, transitioning from high-margin manufacturing to lower-margin brokerage.
3. Q1 Guidance and Financial Impact
Despite a Q4 earnings beat, management projected Q1 2026 revenue of $600M–$625M, missing the $653M consensus and flagging a $65M revenue hit tied to regulatory shipping changes.
4. Valuation Reset and Upside Potential
Hims’ P/S multiple fell from 8–10x in early 2025 to 2x on $2.35B trailing revenue, well below its 3.3x median, suggesting over 50% upside if valuations normalize.