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As its high-margin compounded LPG-1 business evolves, Health for him and her may be finding a new opportunity in peptides.
Shares of the telehealth company rose Thursday after HHS Secretary Robert F. Kennedy Jr. announced Wednesday that the FDA plans to convene a meeting of the Pharmaceutical Preparations Advisory Committee to review peptides for possible inclusion on the 503A bulk list, a designation that allows drugs to be prepared according to individual prescription rather than mass produced.
For Hims, the bigger story is how the expansion of peptide compounding could unlock new revenue streams as it steers members toward brand-name GLP-1 compounded medications instead of more profitable GLP-1 compounded medications. The telehealth company has been moving toward a peptide business for years.
Peptides are short chains of amino acids (think of them as small building blocks of proteins) that are being explored for a wide range of health and wellness uses. They are controversial because scientific evidence on their long-term safety and effectiveness is limited and their production remains largely unregulated.
Hims & Hers made a significant move into the space in February 2025 when it acquired a California-based peptide facility. At the time, CEO Andrew Dudum called demand for peptides “future-facing innovation.”
“There are still many use cases to be launched,” Dudum said. “Peptide innovation is at the forefront of many categories that we are excited to begin offering.”
Following Kennedy's announcement Wednesday, Dr. Patrick Carroll, Hims' chief medical officer, applauded the news as a move away from the “gray market,” saying the goal is to bring peptide therapy into regulated, physician-led care.
“Our medical team believes that certain peptide therapies have significant potential to help Americans live healthier lives, and we are actively exploring how to expand access in a way that aligns with FDA guidelines,” Carroll said.
Leerink Partners called the news that the FDA will review peptides for compound listing a positive outcome that could give Hims a clearer regulatory path to scale peptide therapies. Still, the company said it will take time for the peptides to improve the company's results.
“This wouldn't immediately translate into revenue, but it would appear to be a growth path that HIMS would push hard,” said Leerink analyst Michael Cherny, who has a hold rating on the stock and a $25 price target. On Thursday it was trading around $26 per share.
For now, the opportunity is still early and the clinical evidence supporting many peptide therapies is still limited.
Of the dozen peptides listed by Kennedy for consideration on the bulk compound list, one, MK-677, is often treated as an illegal drug when sold for human consumption. Growth hormone has also been banned by the World Anti-Doping Agency.
Other peptides on the list, such as GHK-Cu and Semax, which are used for cosmetic or cognitive enhancement, are generally considered less controversial, but still lack strong scientific backing.
Kennedy, who has supported many medical treatments and dietary options outside of those supported by conventional science, was asked about his plans to expand peptide therapies during a House Ways and Means Committee hearing on Thursday.
“Peptides were not supposed to be regulated,” Kennedy said, arguing that the Biden administration restricted the use of peptides due to safety concerns he considers unfounded.
The FDA process is just beginning and the July meeting will be advisory only, so the change is not expected to be immediate.
Still, investors are already focusing on what will replace GLP-1-fueled growth for Hims, and peptides are emerging as one of the clearest candidates yet.
