Hims & Hers Shares Jump as Trump FDA Pick Seen as Major Ally

(Bloomberg) -- Hims & Hers Health Inc. shares surged 24% to close at fresh record after Hunterbrook Media said the company is poised to be a major beneficiary of President-elect Donald Trump’s nomination of Marty Makary to lead the Food and Drug Administration.

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Hunterbrook said in a Monday report that Hims & Hers may have “a key ally” in Makary, who is an executive at Sesame Inc., a startup that also sells compounded GLP-1 weight loss drugs. Hunterbrook’s hedge fund, Hunterbrook Capital, said it’s long Hims shares, reversing a June short bet, which had focused on online sales of the firm’s compounded GLP-1 injections.

Hims & Hers didn’t immediately respond to a request for comment.

Hims & Hers shares have gyrated this year after the company started offering copycat versions of GLP-1 injections that are not approved by the FDA. The company is allowed to sell those drugs due to shortages for FDA-approved brand name medications sold by Eli Lilly & Co. and Novo Nordisk A/S.

Shares of the telehealth company jumped Nov. 21 when a court document showed the FDA needs more time to determine if Eli Lilly’s GLP-1, tirzepatide, should remain off the shortage list. The FDA took it off the list in October, but then was sued by a compounding trade association and is reconsidering its decision. Hims & Hers doesn’t sell compounded tirzepatide. Novo’s drug, semaglutide, is still listed as “currently in shortage” by the FDA.

Shares of Hims & Hers have rallied more than 250% so far this year, on track for their best annual performance since the company listed on the public markets.

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

(Updates stock move at market close)

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