Hims & Hjer Health(Nyse: Hims) He was a top health care supply in the last five years, raising by about 350% during this stretch. Focusing on the provision of clients of personalized telehesion options, the job has experienced a huge growth.
Recently, it has been a great opportunity to help people approach GLP-1 for weight loss drugs, which is sometimes difficult to get because of huge demand. But this strategy could face some challenges that are ahead of us because HIMs and its do not make top GLP-1 medicines. Instead, he was able to associate patients with complex drugs that regulators do not approve and include a mixture of multiple ingredients.
Although not accurate copies of popular GLP-1 medicines are not allowed to make but only in the midst of a lack. And recently the food and medication administration announced that semaglutide, an active ingredient in Omempic and Wegovy (which Novo Nordisk creates), it is no longer a deficiency. This could also undermine the growth strategy of her and hers.
In the last few years, Hims & Hers has made me enchanting stock growth How his job was flourishing. Last year’s sale has reached just under $ 1.5 billion, which is almost three times over $ 527 million, which he reported in 2022. The company focuses on providing patients with personalized drugs, including treatment of sensitive areas such as erectile dysfunction and hair loss. And by expanding his offer, he reached a wider group of customers.
His fantastic growth in recent years has been a great reason for the success of the shares, and there has been a late acceleration as he focused on losing weight. But with a market capitalization of $ 10 billion and a trading section in 85 times more than it Great earningsThe pressure is to continue to create strong growth in the future, or the premium that investors pay for jobs may be no longer justified.
The Hims & Hers section fell on the news that semaglutide was no longer missing, but CFO Yemi seems to be overwhelmed by the development of development. The company will focus on oral drugs and sell the generic versions of Liramutide, which also makes the new Nordisk. And gathering still believes that even without semaglutides, business weight loss business can make $ 725 million in revenue this year.
Patients, however, may not want to switch from semaglutide to other treatment options, especially if they are used to it and do not experience problematic side effects, which can sometimes be the biggest problem with GLP-1 treatments.
In addition, semaglutide is in high demand because of its efficiency and ability to lose about 15% of their body weight on average. With lyraglutide, the average weight loss was about 5% to 10%.
And if semaglutide is now easier to be available so that it is no longer in the absence, it can lead to a fall in demand for personalized HIMS drugs. The big question is how much patients will be willing to switch to a different weight loss product. The administration seems to be sure that it will not be a big question, but if the demand does not remain robust, the growth rate of the Hims -hers could slow down significantly.
HIMS & HERS have been making a lot of growth in recent years, but my concern is that weight loss is a large part of its movement that moves forward, the growth rate can once again slow down in future quarters. And huge shares of shares in recent years mean that it will be harder to justify investing in a business in such an inflated estimate if expectations are not high that his profit will increase significantly in the future.
Investors may want to approach the approach to waiting and watching health care supplies to see how many of its results are in the next few quarters and to gain insight into whether the demand is strong even after switching patients to other weight loss treatments, before deciding to invest in it. If there is no great decline in demand, it could be a sign that his strategy is sound. But it is too early to say if it will show up, why I would take off the purchase of shares for now.
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