Hims and Hers is compounding Ozempic and selling it cheaper than NVO. That's either a brilliant play or a regulatory time bomb. Or both.

$HIMS provides a telehealth platform that allows them to prescribe and deliver medications to their clients, including weight loss, hair loss treatments, ED medications, skincare, and mental health.

They do not use the traditional method of prescription through pharmacies since the platform skips all the steps, making the process convenient and fast. In this regard, the client fills out a health questionnaire which is reviewed by a licensed physician who then sends over their prescribed medication to the client.

The revenue growth has been impressive. The GLP-1 weight loss class has become revolutionary for the company.

The Bull Thesis: The business model of HIMS is structurally superior compared to the traditional pharmaceutical model. There is an extremely large number of potential consumers in each of the categories in which HIMS works. The potential of the GLP-1 class alone is multi-billion dollars.

The Bear Thesis: HIMS is currently compounding Semaglutide due to its status as a medication in short supply from the FDA. If the shortage problem gets resolved by Novo Nordisk and the compounding ban gets implemented, it will remove a major source of revenue for the company, since their entire business model revolves around dealing with regulation.

This is one of the most interesting and genuinely risky stocks I've covered. Not risky in a "bad management" way but risky in a "the whole thesis can change with one regulatory decision" way.

What's your take on the stock?