$HIMS provides a telehealth platform that allows them to prescribe and deliver medications to their clients, including weight loss, hair loss treatments, ED medications, skincare, and mental health.
They do not use the traditional method of prescription through pharmacies since the platform skips all the steps, making the process convenient and fast. In this regard, the client fills out a health questionnaire which is reviewed by a licensed physician who then sends over their prescribed medication to the client.
The revenue growth has been impressive. The GLP-1 weight loss class has become revolutionary for the company.
The Bull Thesis: The business model of HIMS is structurally superior compared to the traditional pharmaceutical model. There is an extremely large number of potential consumers in each of the categories in which HIMS works. The potential of the GLP-1 class alone is multi-billion dollars.
The Bear Thesis: HIMS is currently compounding Semaglutide due to its status as a medication in short supply from the FDA. If the shortage problem gets resolved by Novo Nordisk and the compounding ban gets implemented, it will remove a major source of revenue for the company, since their entire business model revolves around dealing with regulation.
This is one of the most interesting and genuinely risky stocks I've covered. Not risky in a "bad management" way but risky in a "the whole thesis can change with one regulatory decision" way.
What's your take on the stock?
Hims and Hers is compounding Ozempic and selling it cheaper than NVO. That's either a brilliant play or a regulatory time bomb. Or both.
byu/aliensayshi instocks
Posted by aliensayshi
3 Comments
Are you using AI to feed you yesteryear information for investment suggestions?
They made a deal with NVO and are no longer selling the compound.
That’s why the next earnings call will be the first binary event.
We all know their revenue will suffer because they can now only resell NVO’s product instead of the compound.
However, if their other product lines’ revenue growth can make up for the diet-product revenue they’ve lost and with the potential peptide opportunity they are definitely worth much more than $28.
And thing to watch is their overseas expansion, if they could duplicate the model in Australia and Japan that will be new revenue stream
It’s not too late to delete this
My take on the stock is I prefer having some understanding of it before buying it or making a post about it