What happened: Hims & Hers Health (HIMS) stock sank 15% in premarket.
What’s behind the move: The telehealth company reported a quarterly loss and sales that missed Wall Street expectations amid higher costs following the health platform’s pivot to branded weight-loss medications
First quarter revenue of $608 million came in below the consensus estimates of $617.5 million. The company posted a loss per share of $0.40, compared with a profit of $0.20 last year. Hims & Hers pointed to $33.5 million in restructuring charges due to inventory write-downs and third-party costs as the company pivoted toward name-brand drugs.
What else you need to know: Hims & Hers Health stock has been recovering from a drawdown earlier this year, as regulatory and legal risks surrounding the manufacturing of compounded GLP-1 weight-loss drugs weighed on shares. The company has been pivoting away from copycat weight-loss medications and toward partnerships with pharmaceutical manufacturers. In March, Novo Nordisk (NVO) dropped its patent infringement lawsuit against the telehealth provider.