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Hims & Hers falls after a court ruling on a drug it never sold

The ruling on a drug similar to one Hims & Hers sold dims the hope that a judge could allow the company to keep selling copycat Ozempic and Wegovy.

J. Edward Moreno

3/6/25 1:31PM

Hims & Hers shares fell Thursday after more news poured in continuing to drive the point home that the tele-pharmacy likely can’t count on selling a significant amount of copycat Ozempic and Wegovy.

A federal judge ruled in favor of the Food and Drug Administration late Wednesday, ordering copycat pharmacies to stop selling exact versions of Zepbound and Mounjaro, popular GLP-1 weight-loss drugs made by Eli Lilly. Compounding pharmacies can only sell exact copies of a drug while it’s in a shortage.

Hims & Hers has never sold compounded tirzepatide, the active ingredient in Eli Lilly’s drugs. It does sell compounded semaglutide, the active ingredient in Novo Nordisk’s weight-loss drugs Ozempic and Wegovy, though it said it will stop after May 2025.

That ruling was in a lawsuit filed by the Outsourcing Facilities Association, a trade association representing compounding pharmacies, which argued that the FDA’s abrupt order to cease compounding tirzepatide after it was removed from the shortage list in October was “reckless and arbitrary.” But the OFA has also filed a parallel lawsuit against the FDA over its removal of semaglutide from the shortage list on February 21.

Both cases are before Judge Mark T. Pittman of the US District Court for the Northern District of Texas, suggesting OFA may get a similar result in the case regarding semaglutide. The ruling dims any glimmer of hope that a judge could somehow allow Hims & Hers to continue selling copycat Ozempic and Wegovy.

Hims & Hers shares have fallen more than 46% since semaglutide was taken off the shortage list. On Wednesday, the company took a hit after Novo Nordisk announced that it would offer Wegovy to uninsured patients at a discounted rate.

Hims & Hers has said its game plan moving forward is to sell Novo Nordisk’s older, less effective GLP-1 drugs and oral medications. The tele-pharmacy sells other generic drugs for erectile dysfunction, hair loss, and mental health conditions.

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Power provider Fermi said it has received preliminary approval from the Texas Commission on Environmental Quality for the planned 6 gigawatts of natural gas generation that’s part of its “Project Matador” to meet the ever-growing power demands of the AI boom.

“At Fermi, our private grid model ensures that the growing demand for AI is met privately,” Fermi America CEO and cofounder Toby Neugebauer said.

Final approval is still subject to a formal meeting and public comment.

The initial gas generators are already en route to the campus, with plans to have these installed and online in 2026, Fermi said.

Microsoft CEO Satya Nadella recently remarked that “the ability to get the builds done fast enough close to power” is the biggest constraint he faces, just ahead of an announced deal with IREN to purchase power-secured cloud computing capacity.

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Fuel cell company Bloom Energy and no-revenues nuclear company Oklo are both off about 5% or more in early trading.
Neoclouds Nebius and CoreWeave are facing significant selling pressure.
The quantum space is getting rocked, with D-Wave Quantum, Rigetti, IonQ, and Quantum Computing all down between 3% and 5% as of 9:42 a.m. ET.
Other story stocks deep in the red include SoundHound AI, Rocket Lab, and Opendoor Technologies.

Goldman Sachs baskets that track retail favorites and nonprofitable tech stocks are down more than 2% and 3% as of 9:43 a.m. ET, respectively, while the Invesco S&P 500 High Beta ETF is also off more than 2%.

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Total revenues climbed to €4.27 billion, or around $4.91 billion, for the quarter, while net income came in at €899 million ($1.03 billion), which translated into adjusted earnings per share of €3.28 — ahead of the ~€1.96 that analysts had expected, per FactSet figures cited by The Wall Street Journal. Spotify now counts a whopping 713 million monthly active users, including 281 million premium subscribers, compared to 640 million and 252 million, respectively, on the same quarter last year.

The boosted figures come on the back of a host of new features that the streaming platform’s introduced, such as “lossless listening,” playlist mixing controls, and direct messages. The company is now forecasting that its total monthly active users will climb to 745 million by the end of the fourth quarter.

With the latest gains today, Spotify is now up ~48% year to date, even as cofounder Daniel Ek announced in September that he’d be stepping down as CEO at the end of the year, almost 20 years on from the company’s inception.