Truist sees FDA review of Tirzepatide shortage as positive for Him & Hers

Truist believes the FDA’s decision to review the shortage of Tirzepatide — after removing the drug from its shortage list a few days back — and allow compounding pharmacies to keep manufacturing its compounded version bode favorably for Hims & Hers and its compounded GLP-1 offering. While the active ingredient in Hims & Hers’ compounded GLP-1s is Semaglutide, which still remains on the shortage list, there were investor concerns that the removal of Semaglutide from the FDA Shortage list was imminent. Truist maintains a Hold rating on Hims & Hers shares, with a price target $23, given the lack of long-erm visibility, but recognizes Hims & Hers could continue to benefit from its recently launched Compounded GLP-1 offerings in the near term.