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As its high-margin compound GLP-1 business evolves, His health and that of him could find a new opportunity in peptides.
Shares of the telehealth company jumped Thursday after Health and Human Services Secretary Robert F. Kennedy Jr. announced Wednesday that the FDA plans to convene a Pharmaceutical Compounding Advisory Committee meeting to review peptides for possible inclusion on the 503A mass listing, a designation that allows drugs to be compounded on an individually prescribed basis rather than mass produced.
For Hims, the bigger story is how expanding peptide compounding could unlock new revenue streams by steering members toward branded rather than more profitable compounded GLP-1 drugs. The telehealth company has been expanding into a peptide business for years.
Peptides are short chains of amino acids – think of them as small building blocks of proteins – that are being explored for a wide range of health and wellness uses. They are controversial because scientific evidence for their long-term safety and effectiveness is limited and their production remains largely unregulated.
Hims & Hers made a significant move in this area in February 2025 by acquiring a peptide production facility based in California. At the time, CEO Andrew Dudum called the demand for peptides “forward-looking innovation.”
“Many use cases have yet to be launched,” Dudum said. “Peptide innovation is at the forefront of many categories that we are excited to begin offering.”
Following Kennedy’s announcement Wednesday, Hims Chief Medical Officer Dr. Patrick Carroll applauded the news as a move away from the “gray market,” saying the goal is to bring peptide therapy into regulated, physician-led care.
“Our medical team believes that certain peptide therapies have significant potential to help Americans live healthier lives, and we are actively studying how to expand access in a way that will align with FDA guidelines,” Carroll said.
Leerink Partners called the news that the FDA would review peptides for compounding listing a positive finding that could give Hims a clearer regulatory path to expand peptide therapies. Despite this, the company said it will take time for peptides to improve the company’s bottom line.
“It wouldn’t immediately translate into revenue, but it would apparently be a growth path that HIMS would work to emphasize,” said Leerink analyst Michael Cherny, who has a Hold rating on the stock and a $25 price target. The stock was trading at around $26 per share on Thursday.
For now, the opportunity is still early and the clinical evidence supporting many peptide therapies is still limited.
Of the dozen peptides Kennedy listed for consideration on the bulk compound list, one – MK-677 – is often treated as an illegal drug when sold for human consumption. Growth hormone has also been banned by the World Anti-Doping Agency.
Other peptides on the list, such as GHK-Cu and Semax, which are used for aesthetic or cognitive purposes, are generally considered less controversial, but still lack a solid scientific basis.
Kennedy — who has supported many medical treatments and dietary options outside of those supported by mainstream science — was asked about his plans to expand peptide therapies during a House Ways and Means Committee hearing Thursday.
“Peptides were not supposed to be regulated,” Kennedy said, arguing that the Biden administration restricted the use of peptides due to safety concerns he believes are unfounded.
The FDA process is just beginning and the July meeting will be advisory only, so change is not expected to be immediate.
Despite this, investors are already focusing on what will replace GLP-1 as the growth driver for Hims, and peptides are emerging as one of the most obvious candidates so far.