GLP1 shortage over

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HIMS is a major player in the compounded semaglutide space. It spent hundreds of millions to promote their offering in the weight loss space, making use of the shortage in Ozempic and other GLP1s in recent months. The company's offerings include semaglutide-based injections, marketed as containing the same active ingredient as popular brands like Ozempic and Wegovy, along with other weight loss options.

But there is now a big problem, the FDA has just announced the shortages are over.

What does this mean for HIMS? Only time will tell but I don’t think this rally can go on a whole lot longer. Whilst we have a lovely rounded bottom pattern I suspect some downwards pressure on the stock so I’m leaning short to mid term bearish, unless the upcoming earnings deliver blockbuster numbers and my idea will be invalidated.

The valuation is too stretched and I don’t think this news will justify the extreme optimism in this high growth stock. So I suspect a drop into the gap fill soon.

Not financial advice, do what’s best for you.
액티브 트레이드
Entered short at $30 , a key psychological level. Trade already up 20%, stop loss at $31
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