Higs & Herh Sarias immerse 28% in concerns about the weight loss business, margins

Actions of Hims and his health It fell 28% on Tuesday, one day after the Telesalud company has been published Fourth quarter results That disappointed the gross margin and caused concerns about the future of its weight loss business.

Hims & Hers reported $ 481 million in revenues for the quarter, 95% more than $ 246.6 million during the same period last year. The net income rose to $ 26,01 million, or 11 cents per share, of $ 1.25 million, or 1 penny per share, a previous year.

But the gross margin of the company, or the gain that remained after taking into account the cost of the goods sold, was 77%, disappointing analysts expected 78.4%, according to Streetacount.

In the company’s quarterly so-called investors on Monday, Financial Director YEMI OKUPE said that the company’s LPG-1 offer scale and its strategic price options were guilty.

HIMS and May began to prescribe compound semaglutide, the active ingredient in Novo NordiskGLP-1 Ozempic and Wogovy weight loss medications. Composite medicines can occur when brand treatments are in shortageBut drug and food administration from the United States announced On Friday that the shortage of semaglutidal injection products has been resolved.

As a result, Hims & Hers said Monday that it will probably stop offering semaglutida composed of its platform after its first quarter, although some consumers can still access custom doses if they are clinically applicable. The GLP-1 offer generated more than $ 225 million in income for the company in 2024.

“We will have to start notifying customers in the next month or two who must start looking for alternative options in commercial dosage,” said the CEO of Hims & Hers, Andrew Dudum, in the call.

In the future, the company said that its weight loss offers will consist mainly in its oral medications and the liraglutida of injectable medications, which plans to introduce in its platform this year.

Morgan Stanley analysts said in a note on Tuesday that the company’s report was “a lot to digest.” They maintained their qualification of equal weight in the stock and said they were surprised by the magnitude of the company’s 2025 guide.

Hims & Hers said he waits between $ 2.3 billion and $ 2.4 billion in revenue this year. The company added that it expects its weight loss offers to generate at least $ 725 million in revenues, excluding the contributions from the compound semaglutid.

“We continue positive in the long -term opportunity, highlighting the attractive platform of the company and a solid history that differentiates it in relation to digital health and DTC compositions,” said Morgan Stanley analysts.

Bank of America analysts said that while the company could have some success in the transition of patients to their other weight loss offers such as their oral medications, it will face a “risk of significant execution” as the supply of the supply of the LP-1 brand.

In addition, analysts said that HEMS & Hers competitors will probably change marketing dollars to other products for conditions such as erectile dysfunction and hair loss, which could press their advertising costs. They reiterated their low performance rating in the stock.

“In general, we do not see the income guide of 2025 and we believe that the history of Beat and Rause probably ends in the short term,” wrote the bank of the Bank of America in a note on Tuesday.

Meanwhile, Citi analysts said they think that the Hims & Hers’ income guide is “aspirational”, since it would require “significant acceleration” in the use of their other weight loss products. They said they have less confidence about the success of these offers.

Even so, analysts increased their target price in the share at $ 27 from $ 25.

“We expect a more convincing entry point and more details about ex-GLP-1 growth before being more constructive,” they wrote in a Monday note.

-Michael Bloom from CNBC contributed to this report