Hims & Hers on Monday released fourth-quarter results that disappointed on gross margin and sparked concerns about the future of its weight loss business.

Hims & Hers said on Monday that it may no longer be able to sell compounded versions of the weight-loss drug made by Novo Nordisk because its pathway to do so closed when the U.S. FDA declared Friday that the drug's shortage was over.

Investors are scrambling to adjust, after the telehealth specialist Hims & Hers said it would stop selling an alternative to Novo Nordisk's Wegovy and Ozempic weight-loss drugs. Hims stock stood about 17% lower at under $42.

Online health and wellness company Hims & Hers reported fourth-quarter earnings that beat Wall Street analysts' expectations and gave upbeat guidance for 2025. | Hims & Hers' business is booming and the company projected 2025 revenue to hit $2.

Shares of Hims & Hers Health tumbled 18% premarket on Tuesday as Wall Street analysts questioned the telehealth provider's lofty sales forecast in the face of looming restrictions on compounded weight-loss drugs.

Hims & Hers Health Inc. shares lost as much as a fifth of their value in after-market trading Monday after the company said that it will soon stop selling some compound weight-loss drugs.

After the FDA removed semaglutide injection products from a shortage list, compounders like Hims have 60-90 days to stop making copies.