Hims & Hers: A Cautionary Tale

My aunt Carol, a woman who believes activated charcoal can cure everything from indigestion to existential dread, recently asked me about Hims & Hers. “Is it a good investment?” she inquired, pronouncing it “Hims and Her’s,” as if it were a quaint bed and breakfast. I mumbled something about due diligence and the dangers of chasing trends, but honestly, the whole thing felt…sticky. Like a conversation you’re trying to politely exit at a holiday party.

The company, for those blissfully unaware, peddles telehealth consultations and prescriptions. They were, until recently, making a rather aggressive play for the weight-loss market with a compounded version of semaglutide – the active ingredient in Ozempic and Wegovy. The stock jumped when they announced a cheaper pill, a move that felt less like innovation and more like a dare. “Forty-nine dollars a month!” the press releases practically shouted. “Stick it to Big Pharma!” It reminded me of a neighbor who started a competing landscaping business using a slightly different shade of mulch.

Then came the FDA, which, let’s be honest, rarely appreciates a good disruption. They signaled their intention to crack down on these copycat drugs, specifically naming Hims & Hers in the process. That’s when the stock did a rather undignified tumble. It’s down over 58% in the last year, which, in the world of portfolio management, is less a correction and more a full-blown collapse. It’s the kind of performance that makes you question all your life choices, and perhaps consider a career in competitive birdhouse building.

The company insists this is a “blatant attack” by Big Pharma, a claim they delivered with the kind of righteous indignation usually reserved for parking tickets. They’re positioning themselves as champions of the little guy, fighting for access to affordable healthcare. It’s a nice narrative, but I’ve seen enough quarterly reports to know that “access” and “profit” are rarely synonymous.

Look, the demand for these GLP-1 drugs is real. People want to lose weight. And the current pricing structure is, frankly, absurd. But simply undercutting the established players with a potentially legally dubious product isn’t a sustainable strategy. It’s like building a house of cards on a bouncy castle. Even if they manage to navigate the regulatory and legal minefield, the long-term outlook isn’t exactly rosy. Competition is fierce, and prices will inevitably come down. The telehealth bubble, inflated during the pandemic, has also started to deflate, leaving a lot of companies scrambling for relevance.

So, is Hims & Hers “toast”? I wouldn’t go that far. But I would definitely advise against adding it to your portfolio right now. Let the legal battles play out, and let’s see if they can actually build a viable business beyond simply copying and undercutting. As for my aunt Carol, I’m just going to tell her to stick to activated charcoal. It’s less stressful.

2026-02-10 00:13

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