00:00Did a drug shortage just crash a stock by 15%? Even though the company doesn't even sell it?
00:05Well, let me explain. The FDA just announced that the shortage of Eli Lilly's weight loss drug,
00:11Zepibound, also known as trizepatide, is officially over. Great news, right?
00:16Well, here's where it gets confusing. Shares of hims and her dropped by 15% after this announcement,
00:22even though the company doesn't sell trizepatide. Instead, they offer compounded
00:26semaglutide, the active ingredient in Wigovi and Ozempic, which is still in shortage.
00:31So why the sell-off? Well, some investors seem to be confused by the FDA's announcement,
00:37thinking it affected semaglutide as well. Others may be overreacted to potential regulatory
00:42scrutiny of compounding pharmacies that produce alternatives to these in-demand drugs.
00:48But here's the kicker. Many investors now see this drop as an opportunity,
00:52arguing that hims and her's business remains strong and this sell-off doesn't
00:56really affect the company's actual fundamentals or future prospects.
01:00It's a perfect example of how market reactions can sometimes miss the mark, and
01:04why staying informed is key. So what do you think? Was this
01:08sell-off justified or just an overreaction? Let me know in the comments below.
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