Hims & Hers on Thursday announced the release of the diet pill with an introductory price of $49. This caused quite a stir in the pharmaceutical industry. However, the company's shares eventually fell.
This trend is not new for investors in this drug company, a young competitor to established drugmakers that started out as a favorite among companies posting rapid growth before entering a downward trend that left it the value has fallen 60% since mid-October.
Hims announced to xrust plans to offer a customized version of Novo Nordisk at a reduced price. Wegovy diet pills, which themselves are losing ground compared to Eli Lilly products. Hims shares rose sharply, followed by a correction that turned into a sell-off when Novo threatened legal action.
«Wall Street's reaction is often based on perception, and the (initial) perception is that $49 is a lot cheaper than what you can buy elsewhere,» said Rajeev Leventhal, senior digital health analyst at eMarketer.
However, he noted that $49 is the price for the first month, and in subsequent months the cost will be $99 for those who purchase a five-month plan.
The company's shares jumped 14% at the opening of trading, but fell 4% by the end of the day. In after-hours trading, shares fell another 4% after US Food and Drug Administration Commissioner Marty Macari said his agency would take «swift action against companies that massively distribute illegal counterfeit drugs claiming to be similar to FDA-approved products.»
Xrust Diet pills Hims & Hers at $49 caused a stir in everyone except the company's shares
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