Shares of Hims & Hers Health, Inc. (NYSE:HIMS) traded higher on Monday in response to President-elect Donald Trump's plans to nominate Marty Makary to lead the Food and Drug Administration (FDA). Here's what you need to know.
What To Know: Market optimism surrounding Makary's selection may have bolstered Hims & Hers shares on Monday as investors anticipate that the nomination could bring favorable regulatory changes to the sector. Makary is a proponent of telehealth and an executive at Sesame, a company that connects consumers to physicians who can prescribe compounded weight-loss drugs.
Hunterbrook Capital released a bullish report on Monday announcing a long position in Hims & Hers Health, citing potential benefits from Makary's leadership at the FDA. The report suggests that Makary's background and expertise could stabilize the compounded GLP-1 drug market, in which Hims & Hers Health is actively involved.
The report also highlighted regulatory challenges Hims & Hers Health has faced, including fluctuating FDA guidance on drug shortages and scrutiny over its prescribing practices. Makary's history with telehealth and compounded drugs may signal a more supportive regulatory environment, driving investor optimism.
Hims has been expanding into the weight-loss drug market with compounded GLP-1 products, which are cheaper alternatives to branded drugs like Wegovy and Mounjaro. Regulatory clarity under Makary's potential leadership is seen as a positive development for the company.
HIMS Price Action: Hims & Hers shares closed Monday up 23.9% at $31.39, according to Benzinga Pro.
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