Hims falls after report FTC is investigating its business practices
Hims & Hers shares tumbled after Bloomberg reported that the Federal Trade Commission is probing complaints about its advertising and cancellation practices.
The FTC has been looking into the complaints for over a year, the outlet reported. The company said last year that it was cooperating with the FTC on an inquiry, though it didn’t specify what it pertained to.
Hims did not immediately respond to a request for comment, nor did it comment to Bloomberg. In a statement to Hims House, a bullish retail investor blog, the company said, “We’ve seen a rehashed story from Bloomberg about an ongoing FTC inquiry.”
The stock was recently down 5% in after-hours trading. Hims has fallen about 10% in the past week after it reported sales that disappointed Wall Street.
Hims, a subscription telehealth service, had about 2.4 million subscribers as of the end of the second quarter. It offers compounded erectile dysfunction and weight-loss medications, among other products.
The company’s sales exploded last year when it began selling compounded GLP-1 weight-loss medications, but that source of growth is drying up. The FTC probe adds to its list of risk factors, including potential lawsuits from drugmakers and enforcement action from the Food and Drug Administration.
Hims did not immediately respond to a request for comment, nor did it comment to Bloomberg. In a statement to Hims House, a bullish retail investor blog, the company said, “We’ve seen a rehashed story from Bloomberg about an ongoing FTC inquiry.”
The stock was recently down 5% in after-hours trading. Hims has fallen about 10% in the past week after it reported sales that disappointed Wall Street.
Hims, a subscription telehealth service, had about 2.4 million subscribers as of the end of the second quarter. It offers compounded erectile dysfunction and weight-loss medications, among other products.
The company’s sales exploded last year when it began selling compounded GLP-1 weight-loss medications, but that source of growth is drying up. The FTC probe adds to its list of risk factors, including potential lawsuits from drugmakers and enforcement action from the Food and Drug Administration.
