In this episode, Scott Becker discusses the sharp decline in Hims & Hers stock following the FDA’s announcement on the end of a weight loss drug shortage.
Chapter 1: What led to the decline in Hims & Hers stock?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is hims and hers takes it on the chin. So hims and hers has been knocking out of the park up literally so much over the last year and even year to date up almost, I think like 200%, some crazy number. Today, they're down about 20%.
Chapter 2: What FDA announcement affected Hims & Hers?
And one of the reasons they're down is because the FDA has declared that a shortage of one of the weight loss drugs is coming to an end. And this is very, very important because there's been certain telemedicine companies, certain distributors that assumed they had a lock on some of that supply, so everybody goes to them.
Here what you've got is essentially the government saying that shortage is over, which takes some of the wind of the sales out of hims and hers, which is down 20-plus percent today. A couple of things that we're watching closely. UnitedHealthcare around 8% to 9% today on news of a Department of Justice investigation. And again, you'll hear this on Saturday. These are from Friday.
Also, Shake Shack, which had jumped yesterday, is down 7.6% today. Finally, I'll make a quick note. I'm thrilled to join the Board of Directors of National Medical Fellowships. National Medical Fellowships is the oldest organization in the country aimed at essentially helping people of color become doctors and medical professionals.
My view of the world is we need both more doctors and healthcare professionals, plus we need more doctors and healthcare professionals of color, that it's not a zero-sum game. Thank you for listening to the Becker Private Equity and Business Podcast. Thank you very, very much for joining us.