Hims & Hers to offer unapproved peptides after US eases curbs

Hims & Hers Health announced on Monday that it will commence offering a selection of unapproved peptide treatments in November, following a relaxation of US regulations. This expansion includes the launch of NAD+, sermorelin, and glutathione, as well as plans to manufacture and offer BPC-157 and TB-500, two popular wellness products not currently approved by the FDA.

The company's CEO, Andrew Dudum, confirmed that BPC-157 and TB-500 will be produced domestically in the United States. These peptides, which are short chains of amino acids, have experienced a surge in popularity over the past year, with wellness influencers endorsing their use for various purposes, such as anti-aging and sexual health.

US Health Secretary Robert F. Kennedy Jr. has expressed support for broader access to these treatments, citing restrictive measures that may be leading Americans to seek alternative sources, potentially posing risks such as contamination and unknown side effects. The pivot to branded weight-loss drugs and international expansion contributed to Hims & Hers' decision to trim its full-year core profit forecast.

Revenue from these peptide treatments is anticipated to remain relatively insignificant throughout the year. Hims & Hers' subscriber base increased by 13% year-over-year, reaching nearly 2.8 million, while monthly revenue per subscriber grew by 30% to $105. The company's CFO, Yemi Okupe, attributed the growth in revenue per subscriber to the introduction of menopause therapies and testosterone testing.

Gross margins significantly decreased to 57% from 74% in the previous year, primarily due to Hims' shift towards costlier branded weight-loss drugs and international expansion. Analysts believe that the mix of branded weight-loss products will continue to bolster revenue per subscriber but will persistently impact gross margins in the near term.

International expansion also played a significant role in growth, with revenue outside the United States more than quadrupling to $233.3 million. US revenue grew by 21% to $657.1 million. Hims narrowed its full-year revenue forecast to $3.13 billion to $3.15 billion, down from the previous range of $3.1 billion to $3.3 billion.