Key Takeaways
- Hims & Hers shares rose 6% today after HHS said it won’t act against qualifying pharmacies compounding six unapproved peptides while it writes a formal rule.
- Hims has said it’s waiting for final FDA rules before selling peptides still under review, so a launch may not come soon.
- A peptide line Hims makes itself could help a gross margin that fell to 63.8% in the second quarter.
- Third-quarter results on Nov. 9 are the next test for that margin.
Hims & Hers Health (HIMS) stock is up 6% today after Health Secretary Robert F. Kennedy Jr.’s Department of Health and Human Services (HHS) opened a side door for peptides.
In a notice filed today, HHS said it will use “enforcement discretion” for compounders making six peptides, including BPC-157 and TB-500, as long as they meet requirements on ingredient quality, manufacturing, safety reporting, labeling and patient-specific prescriptions. The pause lasts only while HHS works on a formal rule change.
That’s a big deal for a company that already owns a peptide facility in California.
A Product Hims Can Make Itself
Since March, Hims has shifted its US weight-loss offering toward branded drugs like Novo Nordisk’s (NVO) Wegovy, keeping compounded GLP-1s only on a limited scale. That’s mostly someone else’s product, at someone else’s price. Peptides would be Hims’ own.
But don’t expect a full launch tomorrow. CEO Andrew Dudum has said Hims is waiting for “full and final rulemaking” from the FDA before selling peptides still under review, Reuters reported in August. Today’s notice falls short of that. Hims does plan to offer NAD+, sermorelin and glutathione by year-end under existing compounding pathways.
The prize isn’t huge, either. Analysts have put the peptide market at $2.2 billion to $3.3 billion, according to the same Reuters report, while Wall Street expects Hims’ own revenue to reach $4.49 billion by 2028:
Margins Are Still the Hims & Hers Story
Hims’ growth hasn’t hidden its margin problem. Gross margin fell from 82.0% in fiscal 2023 to 73.8% in fiscal 2025:
It fell further this year, to 63.8% in the second quarter from 76.4% a year earlier, as branded weight loss and international sales grew. In August, management cut the top of its full-year adjusted EBITDA range to $325 million from $350 million, even as it raised its revenue forecast to $3.1 billion to $3.3 billion.
Because Hims would make them itself, peptides could do more for that margin than the market’s size suggests.
TIKR Tracks 16 Analysts on Hims & Hers. How Many Say “Buy”?
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Why Nov. 9 Matters More for Hims & Hers Stock
Hims reports third-quarter results after the close on Nov. 9, with guidance of $75 million to $95 million of adjusted EBITDA. Watch the margin, and any timing on peptides. The FTC’s lawsuit over Hims’ billing and data practices is still pending.
Today’s notice is a real opening, but a temporary one Hims may not use for the peptides that matter most yet. The Nov. 9 margin will matter more to the stock. If HHS makes the rule final with all six peptides on it, though, Hims has the facility to move quickly.
So What Is Hims & Hers Stock Actually Worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
