Hims stock falls after lawmakers propose GLP-1 compounding restrictions

Investing.com -- Hims Hers Health Inc (NYSE: HIMS) stock fell 4.4% Wednesday after U.S. lawmakers introduced legislation that could significantly impact the company’s fastest-growing product category.

The bipartisan "Safeguarding Americans from Fraudulent and Experimental (SAFE) Drugs Act of 2025" aims to restrict compounded versions of popular GLP-1 weight-loss medications. Representatives Rudy Yakym (R-IN) and André Carson (D-IN) introduced the bill to protect patients from what they describe as "untested, unapproved, and potentially dangerous mass compounded drugs."

The proposed legislation would specifically target companies that produce compounded versions of FDA-approved medications, including the increasingly popular GLP-1 drugs used for weight loss and diabetes treatment. These compounded alternatives have become a significant growth driver for Hims & Hers Health.

Meanwhile, shares of established GLP-1 drug manufacturers moved higher, with Novo Nordisk A/S (NYSE: NVO) rising 6.2% and Eli Lilly and Company (NYSE: LLY) gaining 1.3% on Wednesday.

The SAFE Drugs Act would codify the definition of "essentially a copy" to prevent mass compounding of unapproved versions of FDA-approved drugs and require compounding pharmacies that ship more than 20 out-of-state prescriptions to report that activity to the FDA.

The bill has gained support from several patient advocacy organizations, including the American Diabetes Association, which previously recommended against using compounded GLP-1 medications due to "uncertainty about their content, safety, quality and effectiveness."

The FDA has reportedly received more than 1,000 adverse event reports linked to compounded GLP-1 drugs, including cases involving dosing errors and unsafe ingredients sourced from unregulated foreign factories.

You May Also Be Interested In