Hims & Hers (HIMS) Drops 12.7% After Hours as GLP-1 Headwinds Mount
As seen on the 24/7 Wall St. homepage on July 29, 2026.
FDA crackdown on compounded GLP-1 drugs and Eli Lilly's direct-to-consumer price cuts are squeezing a key growth engine for the telehealth giant.
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Shares of Hims & Hers fell from an opening price of roughly $28.65 to around $25 in after-hours trading, a decline of about 12.7%. The sell-off reflects two converging pressures on one of the company's most important growth drivers: the FDA has been cracking down on compounded versions of GLP-1 weight-loss drugs, and Eli Lilly has moved to cut prices directly to consumers, intensifying competition for the telehealth platform.
Compounded GLP-1 medications had become a meaningful revenue stream for Hims & Hers, which marketed lower-cost alternatives to branded drugs like Ozempic and Mounjaro through its direct-to-patient model. Regulatory pressure limiting that business, combined with a branded drugmaker competing more aggressively on price, narrows the window the company had carved out in the obesity and diabetes treatment market.
The after-hours price action suggests investors are reassessing how much of the company's near-term growth was tied to the compounded GLP-1 opportunity. How management responds — whether by expanding into other treatment categories or finding a new angle on weight-loss care — will be a key thing to watch in the sessions ahead.
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Mentioned: HIMS
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