Hims & Hers Health Soars Amid Potential Links Led by FDA

Investing.com -- Hims & Hers Health, Inc. (NYSE: HIMS) shares rose by as much as 18% on Monday, marking the largest daily increase since November 11. This increase followed a report from Hunterbrook Media, part of Hunterbrook Capital, suggesting that the company's presidential candidate Donald Trump's nominee for Commissioner of the Food and Drug Administration (FDA) could benefit the firm. Hunterbrook Capital converted its position in Hims & Hers from short to long, adopting a more optimistic outlook on the company's future. The nominee in question, Dr. Martin Makary, currently serves as an executive at Sesame, a telehealth company that sells combined GLP-1 medications online, similar to Hims & Hers. The potential impact of an FDA commissioner with direct connections to the industry is significant. Analysts consider this connection potentially positive news for Hims & Hers and the broader combined GLP-1 medication market. Bank of America analysts noted that Dr. Makary's confirmation is not yet guaranteed, but his current role could be seen as a positive sign for companies involved with the composition of GLP-1 products. The FDA’s stance on this issue will be crucial, as it will determine companies like Hims & Hers' ability to continue selling these combined medications. The FDA recently postponed its decision regarding the shortage of tirzepatide, a related compound, and is expected to provide a status report by December 19 or within seven days after a return decision. The current administration may delay actions on combined GLP-1s until the next administration takes office. If the next FDA leader supports the composition of GLP-1 drugs, this could be advantageous for Hims & Hers and the industry as a whole.