Shares of telehealth company Hims & Hers Health surged sharply this week, extending gains after a significant regulatory shift signaled new opportunities in the peptide market. The stock rose about 4% to $25.28 on Thursday, following an 8% climb during trading, after closing up 14% the previous day. The rally is a direct reaction to comments from Robert F. Kennedy Jr. and news that the U.S. Food and Drug Administration (FDA) is reconsidering its stance on regulating certain peptide substances.
The regulatory catalyst involves the FDA's decision to loosen restrictions and remove several peptides from its Category 2 safety-risk classification list. This category had deemed the substances to carry significant safety risks, such as cancer and heart-related concerns. Kennedy framed the move as a "long-overdue action to restore science, accountability, and the rule of law." Furthermore, the FDA has scheduled an advisory panel meeting in July to review whether seven specific peptides—including BPC-157, TB-500, KPV, and MOTS-c—should be permitted for production by compounding pharmacies.
This development is seen as a major positive for Hims & Hers, which has been strategically positioning itself in the peptide space. The company, known for its telehealth platform and weight-loss offerings, acquired a peptide manufacturing facility in California in 2025 to strengthen its supply chain. Peptides are already central to parts of its business; semaglutide, the active ingredient in Novo Nordisk's Wegovy, is a peptide. Hims began offering compounded semaglutide in 2024 and later pivoted to a partnership with Novo Nordisk to sell branded Wegovy and Ozempic.
Analysts have begun to factor in the potential upside. Bank of America raised its price target on Hims to $25 from $21, increasing its valuation multiple assumption to 25.5x from 21.5x, while maintaining a neutral rating. The brokerage noted the FDA's move could open the door to additional revenue streams and allow Hims to repurpose existing GLP-1 capacity for other peptide therapies. However, caution remains as the FDA's actions are an initial step and do not guarantee final approval for compounding use. The company has not provided a commercialization timeline or revenue forecasts tied to peptides, leaving the stock driven by regulatory expectations for now.
