Why Hims & Hers (HIMS) Stock Is Falling despite the $49 Weight-Loss Pill Buzz

Shares of Hims & Hers Health (HIMS) fell more than 10% in pre-market trading today after the company’s launch of a $49 weight-loss pill drew pushback from the FDA and competitors. HIMS stock had jumped as much as 14% following the launch of the pill, which is similar to Novo Nordisk’s (NVO) Wegovy, but the rally quickly faded. Shares ended Thursday down about 3.7% as investors pulled back after the initial surge. Meanwhile, rivals Novo Nordisk and Eli Lilly (LLY) were each down around 8%.

For context, Hims & Hers Health provides accessible healthcare products and services, including prescription medications, wellness products, and online medical consultations.