Hims & Hers Health, a compounding pharmacy that produces a knockoff version of Novo Nordisk’s Wegovy, saw its stock surge on Friday after facing backlash over its Super Bowl ad. The ad criticized the makers of approved weight-loss drugs and omitted critical safety information.
Two senators, Richard Durbin and Roger Marshall, sent a letter to the acting Food and Drug Administration Commissioner asking for an investigation into Hims & Hers for “misleading patients.” The senators argued that there should be no disparity in pharmaceutical advertising requirements between regulated entities.
Hims stock jumped 5.1% on Friday, closing at $42.55. Shares broke out of a cup base with a buy point at $35.02 on January 31st. The company produces a compounded version of semaglutide, the active ingredient in Wegovy and type 2 diabetes drug Ozempic.
The Hims ad spent about 40 seconds of its 90-second run time spelling out possible side effects of Wegovy, while its own product did not include any warnings. Senators said that the ad “glaringly omits” critical safety information, including potential adverse effects such as pancreatitis and gallbladder problems.
Hims & Hers stock has risen markedly over the last month, with shares up nearly 48% over the past four weeks. The company ranks second on the IBD 50 list of elite growth stocks, with a perfect 12-month performance rating of 99.
Source: https://www.investors.com/news/technology/hims-stock-hims-hers-super-bowl-ad