Hims & Hers Stock Is Looking to Cash in From the GLP-1 Hype, but Will Its Controversial Strategy Pay Off?
Healthcare stocks don't have to be making weight loss drugs to be hot buys due to the rising demand for glucagon-like peptide 1 (GLP-1) treatments. A good example of that is Hims & Hers Health (NYSE: HIMS). Up more than 140% this year, the telehealth company has been a hot buy with investors not only for its impressive growth but also for its ability to help connect patients with GLP-1 drugs.
However, the company's strategy is potentially a risky one. Here's what you need to know if you invest in the business.
Due to the shortage of GLP-1 drugs, companies can offer compounded drugs to help meet demand. (Compounded drugs are a combination of two or more drugs.) But the U.S. Food and Drug Administration (FDA) hasn't approved compounded drugs.
Source Fool.com
