HIMS Stock Jumps 5% After HHS Temporarily Clears Compounding Of Six Peptides

• The compounding players must follow basic rules on ingredient quality, manufacturing, safety reporting, labeling, and prescriptions written for individual patients. 
• Hims has already prepared for a potential approval of peptide compounding by securing a California peptide facility and testing ingredients.
• Hims CEO Andrew Dudum termed the news “encouraging progress.”

Shares of Hims & Hers (HIMS) jumped 5% on Wednesday after the Department of Health and Human Services said it would temporarily allow compounding pharmacies to produce six popular peptides.

HHS said it will not go after state-licensed pharmacies, federal facilities, or licensed doctors for compounding six peptides—BPC-157, Epitalon, KPV, MOTS-c, Semax, and TB-500—as long as they follow basic rules on ingredient quality, manufacturing, safety reporting, labeling, and prescriptions written for individual patients.

“…based on the Pharmacy Compounding Advisory Committee (PCAC) meeting and data regarding utilization of peptides, HHS believes that there is significant interest in the use of these peptides in compounding,” HHS said, referring to the advisory committee recommendation in July that some peptides be considered for compounding.

The new policy is temporary while the FDA completes formal rulemaking on the official list of bulk substances that can be used in compounding. Compounders must report serious adverse events with the use of the drugs or any product quality issues such as contamination to the FDA, HHS added.  Compounded drugs are not FDA-approved.

How HIMS Is Positioned To Monetize The Move

Hims has already prepared for a potential approval of peptide compounding by securing a California peptide facility and testing ingredients, while signaling interest in offering items such as sermorelin, glutathione, and NAD+ depending on final regulatory outcomes. Peptides used for recovery, inflammation, sleep, and related wellness goals have drawn strong consumer interest online, even without formal FDA approval.

“We have spent years building the infrastructure we need in our very own US-based peptide manufacturing facility, developing dosing protocols with clinical experts, and setting up frameworks to better understand these emerging treatments,” the company’s Chief Medical Officer Anant Vinjamoori said after the HHS directive in a post on X. HIMS CEO Andrew Dudum also termed it “encouraging progress.”

HIMS, however, has also faced setbacks this year, including an FTC lawsuit filed in late July alleging deceptive privacy practices involving data sharing with advertising platforms and misleading billing or cancellation practices. The company transitioned from offering compounded GLP-1s to branded versions earlier this year, pressuring margins despite subscriber growth.

How Did HIMS Retail Traders React?

On Stocktwits, retail sentiment around HIMS stock rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘normal’ levels.

A few Stocktwits users expressed anticipation for the company’s upcoming earnings.

Another termed the temporary clearance on peptide compounding “a bonus,” terming the stock cheap at its current valuation.

HIMS stock has fallen 8% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.