Shares of Hims & Hers Health (HIMS) are extending gains on April 16 after HHS Secretary Robert F. Kennedy Jr. said the Food and Drug Administration (FDA) is considering lifting restrictions on more than a half-dozen peptides.
Following this rise, HIMS is trading slightly below its 100-day moving average (MA), and a clear break above $27 is expected to accelerate bullish momentum in the near term.
As of this writing, Hims & Hers stock is down nearly 25% from its year-to-date high.
The HIMS stock price rally on Thursday is due to RFK Jr.’s aggressive push to move peptides out of the gray market and into regulated channels.
By convening an advisory committee to evaluate adding these compounds to the 503A Bulk Products List, the FDA is essentially opening a multibillion-dollar door for compounding pharmacies.
This would unlock significant advantages for Hims & Hers, as it recently acquired a California-based peptide manufacturing facility. Additionally, the telehealth firm already has the national distribution network to capitalize on legalized access.
All in all, if the FDA does indeed lift restrictions on some peptides after its July meeting, it will significantly diversify the company’s revenue beyond its current GLP-1 weight loss offerings.
Despite the aforementioned political tailwind, disciplined investors are advised to stay on the sidelines, in part because the FDA’s initial move won’t impact earnings until 2027, according to BofA analysts.
Additionally, Hims & Hers stock is currently trading at a forward price-to-earnings (P/E) multiple of about 35 times, which seems quite exaggerated given that the company’s net income actually declined nearly 21% in its last reported quarter.
With insiders aggressively unloading stock in recent months and competition from Amazon (AMZN) Pharmacy’s same-day delivery of branded GLP-1 intensifying, HIMS faces significant headwinds in 2026.
And it’s not like the telehealth company is paying a healthy dividend to offset some of these risks.
