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As the high-margin GLP-1 compounding business evolves, his and her health We may be discovering new opportunities for peptides.
Shares of telemedicine companies soared Thursday after Health and Human Services Secretary Robert F. Kennedy Jr. announced Wednesday that the FDA plans to convene a Pharmacy Compounding Advisory Committee meeting to consider peptides for possible inclusion on the 503A bulk list. This list is a designation that allows medicines to be compounded based on individual prescriptions rather than being mass-produced.
For Hims, the bigger story is how expanding its peptide formulations can open up new revenue streams by directing members to branded GLP-1 drugs rather than more profitable combination GLP-1 drugs. Telemedicine companies have been building toward the peptide business for years.
Peptides are short chains of amino acids and can be thought of as small building blocks of proteins. It is being studied for a wide range of health and wellness applications. Scientific evidence regarding long-term safety and effectiveness is limited, and its production is largely unregulated and controversial.
Hims & Hers made a major move into this space in February 2025 with the acquisition of a California-based peptide facility. At the time, CEO Andrew Dadham called the demand for peptides “innovation for the future.”
“A lot of the use cases haven’t been launched yet,” Dudum said. “Peptide innovation is at the forefront of so many categories that we are excited to begin offering.”
Following Kennedy’s announcement on Wednesday, Dr. Patrick Carroll, Hymes’ chief medical officer, hailed the news as a departure from the “grey market” and said the goal is to bring peptide therapy into regulated, physician-directed treatments.
“Our medical team believes that certain peptide therapies have meaningful potential in helping Americans live healthier lives, and we are actively seeking ways to expand access consistent with FDA guidance,” Carroll said.
Leerink Partners hailed the news that the FDA will review peptides for its formulation list as a positive outcome that could give Hims a clearer regulatory path to scale up its peptide therapy. Still, the company said it will take time for peptides to boost the company’s revenue.
“While this won’t translate into immediate earnings, it appears to be a strong growth vehicle for HIMS,” said Michael Charney, an analyst at Leerink, who gave the stock a hold rating and a $25 price target. The stock was trading around $26 per share on Thursday.
For now, the opportunity is still in its infancy, and clinical evidence supporting many peptide therapies is still limited.
MK-677, one of the more than a dozen peptides Kennedy named for consideration on the combined bulk list, is often treated as an illegal drug when sold for human consumption. Growth hormone is also banned by the World Anti-Doping Agency.
Other peptides on the list, such as GHK-Cu and Semax, which are used for beauty and cognitive enhancement, are generally considered less controversial but still lack solid scientific support.
President Kennedy, who has supported many medical and food options other than those backed by mainstream science, was asked about plans to expand peptide therapy during a House Ways and Means Committee hearing Thursday.
“Peptides should not have been regulated,” Kennedy said, arguing that he believes the Biden administration’s restrictions on the use of peptides citing safety concerns are unfounded.
The FDA’s process is just beginning, and the July meeting will be a recommendation only, so changes are not expected right away.
Still, investors are already looking to alternatives to GLP-1 as growth drivers for Hims, with peptides emerging as one of the clearest candidates so far.
