Hims & Hers Health Inc (Hims & Hers Health (HIMS)) shares surged on Thursday after a Food and Drug Administration advisory panel voted to place the BPC-157 peptide on an allowed pharmacy compounding list. The move is a big deal for the company, which relies on compounded formulations for some of its offerings.
The broader market had a rough day—the Nasdaq was down 1.96% and the S&P 500 shed 1.32%—but HIMS bucked the trend, rising 5.68% to $33.47. Even the healthcare sector, which was up 0.87%, couldn't match that performance.
Advisory Vote Drives Sentiment
The catalyst came from the Pharmacy Compounding Advisory Committee (PCAC), which met on July 23-24 to discuss bulk lists under the 503A framework. Inclusion on that list allows state-licensed pharmacies to compound reviewed peptides without needing individual patient prescriptions, which is a big regulatory win for companies like Hims & Hers that use compounded ingredients.
Earlier in July, BofA Securities analyst Allen Lutz had noted that preliminary FDA briefing materials recommended against adding seven peptides to the list, citing limited clinical evidence and safety concerns. But Lutz also pointed out that the FDA's preliminary position required advisory panel input before any final determination. Thursday's vote suggests the panel saw things differently, at least for BPC-157.
Short Interest Declines
Meanwhile, short sellers are backing off. Short interest in Hims & Hers fell from 65.47 million shares to 61.17 million during the latest reporting period. That still leaves 31.82% of the float short, but the trend is moving in the right direction. Based on average daily volume of 18.92 million shares, it would take about 3.23 days to cover all short positions—not exactly a squeeze, but not a comfortable position for bears either.
Upcoming Earnings Expectations
Hims & Hers is set to report second-quarter earnings on August 10. Analysts expect a loss of $0.04 per share on revenue of $724.14 million. Recent analyst moves include BofA Securities maintaining a Neutral rating but raising its price target to $37 on July 9, and Canaccord Genuity keeping a Buy rating with a $40 target on July 1.
Technical Analysis
Technically, HIMS is showing some constructive signs. The stock is trading 0.6% above its 20-day moving average ($34.74) and 15.4% above its 50-day SMA ($30.28), keeping the intermediate trend pointed up after the May swing low. It's also 12% above the 200-day SMA ($31.20), which is a positive signal for trend followers.
Momentum looks more reset than stretched—the Relative Strength Index (RSI) sits at 54.63, neutral territory. The moving average structure is a mixed bag: the 20-day is above the 50-day (bullish), but the 50-day remains below the 200-day, a lingering effect of the death cross that formed in December.
- Key Resistance: $36
- Key Support: $30
For now, the FDA panel vote gives Hims & Hers a fresh narrative to work with. Whether it translates into sustained gains will depend on earnings and how the regulatory picture develops.
