Hims & Hers Faces Retail Skepticism After Layoffs, FDA Ban on Compounded Wegovy
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Synopsis
The company said the layoffs were unrelated to the regulatory change.
Retail investor sentiment around Hims & Hers Health remained negative over the weekend after the telehealth firm confirmed it will lay off 68 employees, or about 4% of its workforce, days after a U.S. FDA ban on mass-manufactured compounded versions of the popular weight-loss drug Wegovy took effect.
Hims & Hers shares jumped 7.9% on Friday to close at $56.56, extending gains slightly after hours to $56.8.
The ban ended a temporary exception that had allowed pharmacies and telehealth providers to compound semaglutide copies due to a prior shortage of Novo Nordisk’s brand-name Wegovy.
The FDA has now declared supply levels adequate, making the compounding of generic copies illegal.
Despite the timing, a Hims spokesperson said the job cuts were unrelated to the compounding ban, adding that the layoffs were aimed at “sharpening how we execute, without affecting our priorities or the specialties we’re committed to,” according to a Reuters report.
The company said it still plans to hire for roles tied to long-term strategic growth.
Hims began offering compounded semaglutide in 2024 at significantly lower prices than branded Wegovy, helping it boost platform subscriptions and drive a 111% year-over-year revenue jump in Q1 2025.
GLP-1 therapies contributed $200 million to Hims’ $1.5 billion in 2024 revenue.
To maintain access, Hims recently struck a deal with Novo Nordisk to offer branded Wegovy through its platform.
The company is also diversifying, with plans to expand into low testosterone and menopause therapies and develop offerings targeting longevity and sleep health.
On Stocktwits, retail sentiment remained ‘bearish’ amid a 19% decline in 24-hour message volume.
Hims & Hers’ stock has risen 124.4% so far in 2025.
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