Hims & Hers down as judge denies motion over end to Lilly’s Zepbound shortage

 Hims & Hers (NYSE:HIMS) fell ~8% in the premarket Thursday after a federal judge denied a motion filed by a compounding trade group over the FDA’s decision to declare that Eli Lilly’s (NYSE:LLY) weight loss drug Zepbound is no longer in shortage.

Hims & Hers (NYSE:HIMS) markets compounded versions of rival Novo Nordisk’s (NVO) weight loss therapy semaglutide at a sharp discount to the branded version. Shares of the telehealth firm sold off in October after the FDA officially announced an end to the Zepbound shortage.

The declaration led to lawsuits from the compounding trade groups, the Outsourcing Facilities Association, which filed a motion seeking a preliminary injunction from U.S. District Judge Mark Pittman over the FDA’s decision.

"We are stunned by the judge's decision, but without the opportunity to review the sealed order, we cannot comment on why he made this decision," Reuters reported, quoting Lee Rosebush, Chairman of the lead plaintiff, the Outsourcing Facilities Association.

Commenting on the court's decision to reject their motion, Morgan Stanley argued that it would be “an incremental positive” for LLY, and there would be an end to the compounding of Lilly’s weight loss therapy tirzepatide after Mar. 19 at 503B outsourcing facilities.

Compounders “may or may not appeal this decision,” Markets Insider reported, quoting Morgan Stanley. The firm has an overweight recommendation and a $1,146 per share target on LLY.

https://www.msn.com/en-us/money/companies/hims-hers-down-as-judge-denies-motion-over-end-to-lilly-s-zepbound-shortage/ar-AA1AnFra