Hims & Hers’ Stock (NYSE: HIMS) Surges YTD: Weight Loss Drug News Spikes Interest

Hims & Hers Health Inc. share price (NYSE: HIMS) has had shareholders on an absolute rollercoaster through 2024 so far, but with the stock still more than 80% up YTD, the dips may seem worth it in the end. As some of the heat came out of the stock in yesterday's session (HIMs down 5.59%), the premarket this morning seems to be following suit with shares 3.13% in the red at the time of writing. With such attention on the firm, we take a look at what has been driving the surge in interest.

The healthcare market was energised when announced its latest expansion into the weight loss sector. Following the after-market hours on Monday, investors rallied behind the company, propelling the stock price by an impressive 30% but since, some of that excitement has pulled back.

The company unveiled plans to introduce lower-priced GLP-1 weight loss injectables and oral weight loss medication across the United States. This strategic move is anticipated to significantly boost its revenue, with projections of surpassing the $100 million mark by the end of 2025. According to the announcement, consumers can access oral weight-loss kits for $79 per month, while the GLP-1 injections will be available at $199 per month.

Hims & Hers Health CEO, Andrew Dudum, underscored the organisation's commitment to providing affordable, high-quality weight loss solutions for customers. This initiative aligns with the company's vision of enhancing accessibility to healthcare products.

Previously, Hims & Hers Health carved out a niche in the telehealth sphere, focusing on anti-hair loss and erectile dysfunction products sold online. The product line has since expanded to encompass birth control and anti-aging offerings.

In an interesting development, the upcoming range of weight loss injections from Hims & Hers Health will contain the same active ingredients found in well-known brands like Ozempic and Wegovy, manufactured by Novo Nordisk. This inclusion aims to offer comparable benefits to those produced by established pharmaceutical players.

The announcement had a substantial impact on the company's shares, which soared by 30.2%. This bullish investor sentiment is reflected in the brand's market valuation, which is now approximately $4 billion.

The expansion into weight loss medications appears to be a calculated step for Hims & Hers Health as it seeks to diversify its product offerings and tap into the growing healthcare market. This strategic move not only promises substantial revenue growth but also enhances the company's reputation as a provider of affordable healthcare solutions. The positive market response, as evidenced by the surge in stock price, signals strong investor confidence in the company's future prospects.