Hims & Hers Health (HIMS.US) experienced a significant drop of over 18% after the FDA announced that semaglutide was no longer in a state of shortage.

On Friday, Hims&Hers Health (HIMS.US) saw a significant drop of over 18%, closing at $54.53, as the US FDA announced that the active ingredients of Wegovy and Ozempic, under Novo Nordisk (NVO.US), have been taken out of shortage. Novo Nordisk rose nearly 4% to $87.02. Hims&Hers Health produces a formula drug containing semaglutide, but US regulations allow the company to legally produce only when the ingredient is in shortage. With the FDA's announcement that the shortage has ended, the company's business in this field may be affected. It is noteworthy that Hims&Hers Health recently announced the acquisition of a peptide production facility in California to enhance its supply chain and meet the growing market demand for its drugs. This acquisition will further strengthen the company's competitiveness in the market for specific drugs, especially in the field of hair loss treatment and weight loss drugs. With the acquisition of this peptide production facility, the company is still expected to innovate more in the field of metabolic health and weight loss in the future.