Citi sees Hims & Hers trading down on Texas court ruling

Citi says a Texas Northern Court ruled yesterday against the Outsourcing Facilities Association’s preliminary injunction against the FDA related to its decision to remove tirzepatide from the shortage list. Pending any decision from the OFA to appeal, all 503A pharmacies must stop compounding identical copies of commercially available tirzepatide in bulk and 503B facilities have until March 19 to do the same, the analyst tells investors in a research note. Citi believes the ruling will very likely end the bulk compounding of tirzepatide, and has direct read-through to the pending semaglutide case, which it also expects will go in the FDA’s favor. Citi thinks shares of Hims & Hers will trade down on the news given the semaglutide read-through. It has a Sell rating on the shares with a $27 price target The stock in premarket trading is down 8%, or $3.20, to $37.69.