Hims & Hers Shares Surge as FDA Considers Easing Peptide Restrictions

Hims & Hers Health (NYSE: HIMS) shares closed Thursday at $26.98, marking an 11.07% increase. The rally was triggered by an announcement from Health and Human Services Secretary Robert Kennedy Jr. regarding the potential removal of 12 peptides from the FDA's Category 2 restrictions. This regulatory shift could transition the current "gray market" for compounded peptide therapies into a fully cleared legal pathway. HIMS is uniquely positioned to capitalize on this change, having acquired a peptide manufacturing facility in California in early 2025, which allows for direct production and distribution. Trading activity was intense, with volume reaching 74.6 million shares, representing a 111% increase over the three-month average of 35.3 million. Since its 2019 IPO, the company has seen an overall growth of 175%. Bank of America analysts responded to the news by reiterating a neutral rating on the stock while raising the price target from $21 to $25. The analysts noted that the company's existing manufacturing capabilities for GLP-1s could be converted to produce these peptides, providing an additional growth tailwind. While HIMS led the surge, the broader telehealth sector showed mixed results. Teladoc Health closed up 5.05% at $5.82, whereas American Well ended the session down 3.04% at $6.05.