What happened: Hims & Hers Health (HIMS) stock sank 15% on Tuesday.
What’s behind the move: The telehealth company reported a quarterly loss and sales that missed Wall Street expectations amid higher costs following the health platform’s pivot to branded weight-loss medications.
First quarter revenue of $608 million came in below the consensus estimates of $617.5 million. The company posted a loss per share of $0.40, compared with a profit of $0.20 last year.
Hims & Hers pointed to $33.5 million in restructuring charges due to inventory write-downs and third-party costs as the company pivoted toward name-brand drugs.
What else you need to know: Hims & Hers Health stock has been recovering from a drawdown earlier this year, as regulatory and legal risks surrounding the manufacturing of compounded GLP-1 weight-loss drugs weighed on shares.
The company has been pivoting away from copycat weight-loss medications and toward partnerships with pharmaceutical manufacturers.
In March, Novo Nordisk (NVO) dropped its patent infringement lawsuit against the telehealth provider. Hims & Hers announced a collaboration with Novo Nordisk, saying it would provide GLP-1 customers with access to a broad assortment of FDA-approved medications and offer compounded semaglutide through the platform on a limited scale.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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