Hims & Hers price target lowered to $21 from $26 at BofA

BofA analyst Allen Lutz lowered the firm’s price target on Hims & Hers to $21 from $26 and keeps an Underperform rating on the shares. On Friday, the FDA announced that it intends to take “decisive steps” to restrict GLP-1 active pharmaceutical ingredients used in non-FDA-approved compounded drugs being “mass-marketed” as similar alternatives to FDA-approved GLP-1 and on Saturday Hims announced that it will stop offering an oral semaglutide pill, citing “constructive conversations with stakeholders across the industry,” the analyst noted. The fact that the FDA did not make a distinction between oral and injectable products leads the firm to believe this could extend beyond the API for oral GLP-1s and include APIs for Hims’ injectable semaglutide, which it says adds a new risk to Hims’ injectable GLP-1 franchise.