Hims & Hers Super Bowl Ad Sparks FDA Scrutiny, Stock Dips

NEW YORK, NY

Telehealth company Hims & Hers Health faced backlash after airing a Super Bowl ad promoting its compounded weight-loss drugs, leading to a call for FDA intervention and a drop in its stock price. A pharmaceutical industry group, the Partnership for Safe Medicines (PSM), urged the FDA to prevent Hims & Hers from airing the controversial ad, arguing that it violates regulations on prescription drug advertising.

Hims & Hers offers compounded semaglutide injections, the active ingredient in Novo Nordisk‘s Ozempic and Wegovy, at a lower price than brand-name versions. While the Super Bowl commercial highlights the affordability aspect, PSM contends that the ad fails to adequately disclose that these products lack FDA approval and omits crucial information about potential side effects, violating legal requirements. Given the vast reach of Super Bowl viewers, PSM expressed concern over this omission.

Furthermore, the organization requested Fox, the network broadcasting the Super Bowl, to remove the advertisement. However, Hims & Hers defended its campaign, emphasizing that it raises awareness about high prescription drug costs. The company asserts that its compounded semaglutide injections adhere to FDA regulations and briefly mentions the lack of FDA approval in the advertisement.

Despite the controversy, Hims & Hers continues to operate, with Wall Street analysts maintaining a Moderate Buy consensus rating based on five Buys, four Holds, and two Sells within the past three months.