FDA says Ozempic shortage is over, hitting copycats like Hims & Hers

The Food and Drug Administration (FDA) announced on Friday that the shortage of semaglutide—the GLP-1 drug ingredient in popular diabetes and weight loss medications like Novo Nordisk’s Ozempic and Eli Lilly’s Wegovy—is over.

The news sent shares of telehealth startup Hims & Hers to drop 26% as companies that make their own compounded, cheaper versions will have to stop.

Why?
The FDA allows pharmacies to make and sell compounded or generic versions of drugs during supply shortages. It gave way for Hims & Hers to sell compounded GLP-1 weight loss injections and treatment at $199 per month—far less than the $1,000 monthly cost of brand-name drugs.

The treatments are a hit among consumers, and Hims & Hers projects $100 million in revenue from its weight loss drugs sales by the end of 2025.

But with the shortage resolved, the FDA said compounded drug makers have the next 60–90 days to stop offering weight loss injections.

Despite the setback, Hims & Hers remains bullish, pointing to potential future shortages and expanding its health offerings. It recently acquired a peptide facility for advanced treatments and an at-home lab testing firm called Trybe Labs.

Stock soared 200% in 2024 and is still up over 100% this year.