Shares of telehealth company Hims & Hers Health got a boost last week on news that it will start offering popular weight-loss drug Wegovy.
Founded in 2017, Hims & Hers is a direct-to-consumer telehealth platform that went public in 2021. The company offers treatments for conditions such as hair loss, sexual health issues, mental health, dermatology and weight management.
Hims & Hers stock was up over 20% after the announcement on April 29, with investors bullish on its new partnership with Wegovy-maker Novo Nordisk — a deal that gives Hims & Hers access to one of the most popular weight-loss treatments on the market.
The timing is key. When drugs like Wegovy were in short supply, Hims & Hers offered custom-made versions using the same active ingredient — something the FDA only allows during shortages. But now that the shortage is over, the company can no longer offer those alternatives.
The new deal allows Hims & Hers to offer the FDA-approved version through its platform, while Novo Nordisk gains access to more customers.
Hims & Hers Health reported first-quarter revenue of $586 million on Monday, beating analysts’ expectations of $538 million. Earnings per share came in at 20 cents, exceeding a forecast of 12 cents, according to LSEG estimates.
As of market close on May 5, the company’s stock price was $41.88, reflecting a year-over-year increase of approximately 272%, compared with a 10% increase for the S&P 500. Despite beating expectations, shares fell in extended trading following weaker-than-expected second-quarter guidance — but rebounded to over $43 as of early Tuesday morning.
How much $1,000 invested in Hims & Hers would be worth now
Hims & Hers went public on Jan. 21, 2021, so its trading history is relatively short compared with more established companies.
Here’s how much a $1,000 investment in Hims & Hers Health would be worth today, based on its May 5 closing price.
If you invested one year ago:
- Percentage change: 272%
- Total: $3,719
If you invested at its 2022 low:
- Percentage change: 1,247%
- Total: $13,466
If you invested when the company first went public:
- Percentage change: 319%
- Total: $4,188
While Hims & Hers has performed well, it remains a relatively young company operating in a competitive market. Volatility is a risk, and past performance doesn’t guarantee future returns.
Financial experts generally recommend diversifying your investments and avoiding putting too much money into any one stock. Broad-based index funds tend to offer more consistent returns and lower fees than picking individual stocks, financial planners say.
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