With The End of the Semaglutide Shortage Hims & Hers Struggles Will Need a New Strategy

America’s fixation on weight loss has long fueled a booming industry of fad diets, miracle pills, and high-stakes pharmaceutical ventures. In recent years, that obsession has converged with the rise of telehealth, giving companies like Hims & Hers a massive opportunity to capitalize on the demand for prescription weight loss medications. But as the recent stock plunge of Hims & Hers shows, consumer trends tied to weight loss drugs are as volatile as the market itself—driven by regulation, shifting demand, and the unpredictability of weight loss fads.

The Boom: Hims & Hers’ Meteoric Rise

Hims & Hers has built its brand on providing easy-access health and wellness solutions for consumers, primarily through its direct-to-consumer telehealth model. Starting with products for hair loss, skincare, and sexual health, the company quickly expanded into the weight loss sector with GLP-1 drugs—specifically, compounded semaglutide, the active ingredient in Ozempic and Wegovy.

For much of 2024, a shortage of semaglutide meant that compounding pharmacies like Hims & Hers were legally allowed to produce and sell their own versions of the drug. This allowed the company to rapidly scale its weight loss business, generating over $225 million in revenue from weight loss treatments alone. The results were staggering—Hims & Hers reported $481 million in fourth-quarter revenue, a 95% year-over-year increase, and its stock price surged over 200% in early 2025.

But that success was built on a temporary opportunity. In early 2025, the Food and Drug Administration (FDA) declared that semaglutide was no longer in shortage, meaning compounding pharmacies could no longer legally manufacture it. As a result, Hims & Hers announced that it would stop offering compounded semaglutide after the first quarter of 2025. This regulatory shift sent the company’s stock plunging 22% in a single day, as investors worried about its ability to maintain explosive growth without its flagship weight loss offering.

The stock market’s reaction to Hims & Hers’ weight loss strategy isn’t just about revenue projections—it’s a direct reflection of how deeply consumer trends are tied to weight loss drug accessibility. The moment the FDA ruled that compounded semaglutide would no longer be permitted, investors understood that demand might shift elsewhere.

The Takeaway: America’s Love Affair with Weight Loss Drugs Isn’t Ending Soon

For Americans who need to lose weight to address health concerns such as diabetes, GLP-1s are a groundbreaking solution offering fast and effective results. However, such users make up only relatively small portion of customers who are in desperate medical need.

GLP-1 drugs have dominated public consciousness as the ultimate weight loss solution. High-profile endorsements from celebrities such as Kathy Bates, Oprah, Ashley Benson executives have further cemented these drugs’ status as the ultimate weight loss hack, reinforcing the idea that anyone—regardless of medical necessity—can benefit from them.

Of course, the appeal is obvious—these drugs suppress appetite, making it easier to eat less and lose weight without the discipline of diet and exercise. For some, this represents a way to bypass the hard work traditionally associated with weight loss, leading to concerns that people may be relying on medication instead of addressing the root causes of unhealthy habits.

While GLP-1s can be highly effective in helping people lose weight, they aren’t a magic bullet. Experts warn that maintaining weight loss still requires long-term behavioral changes. Many patients who discontinue GLP-1 drugs experience weight regain if they haven’t built sustainable habits around nutrition and physical activity. Critics argue that the growing popularity of these drugs reinforces a culture of quick fixes rather than promoting overall health and wellness.