Trump's FDA nominee viewed as key ally Hims & Hers Health (HIMS.US) surges to new highs

Hunterbrook Media said Hims & Hers Health (HIMS.US) would be a major beneficiary of President-elect Donald Trump's nomination of Marty Makary to head the FDA, sending the remote health company's shares up 24% to a record high of $31.35.

Hunterbrook said in a Monday note that Hims & Hers could have a "key ally" in Makary, a senior executive at Sesame Inc., a startup that also sells a combination GLP-1 weight loss drug. Hunterbrook's hedge fund Hunterbrook Capital said it was buying Hims & Hers shares, reversing a June short position that focused on the online sales of the company's combination GLP-1 injections.

The stock has been volatile since the company began offering unapproved copies of the GLP-1 injections after being granted permission to sell them due to shortages of the FDA-approved brand drugs sold by Eli Lilly (LLY) and Novo Nordisk (NVO).

Shares surged on Nov. 21 after a court filing showed the FDA needed more time to decide whether to keep Eli Lilly's GLP-1 drug tirzepatide off a shortage list. The FDA had removed it in October but was sued by a combination drug industry group and was reconsidering its decision. Hims & Hers does not sell the combination tirzepatide. Novo Nordisk's drug semaglutide remains on the FDA's "currently in shortage" list.

Hims & Hers shares have risen more than 250% this year and are on track for the best annual performance since the company went public.

Still, Wall Street is cautious about the company, with more than half of analysts covering the stock giving it a neutral or sell rating, according to data compiled by Bloomberg. About 40% of analysts covering Hims & Hers recommend buying the stock.