RFK Jr.'s peptide policy could boost Hims & Hers as its GLP-1 business evolves

In this articleAs its high-margin compounded GLP-1 business evolves, Hims & Hers Health may be finding a new opportunity in peptides. Shares of the telehealth company jumped Thursday after HHS Secretary Robert F. Kennedy Jr. announced Wednesday that the FDA plans to convene a Pharmacy Compounding Advisory Committee meeting to review peptides for potential inclusion on the 503A bulk list, a designation that allows drugs to be compounded on an individual prescribed basis rather than mass producing. For Hims, the bigger story is how expanding compounding for peptides could unlock new revenue streams as it directs members toward branded rather than more profitable compounded GLP-1 drugs. The telehealth company has been building toward a peptide business for years. Peptides are short chains of amino acids — think of them as small building blocks of proteins — that are being explored for a wide range of health and wellness uses. They're controversial because scientific evidence on their long-term safety and effectiveness is limited, and their production remains largely unregulated.Hims & Hers made a significant move into the space in February 2025 when it acquired a California-based peptide facility. At the time, CEO Andrew Dudum called peptide demand "future-facing innovation." "Many use cases have yet to be launched," said Dudum. "Peptide innovation is at the forefront of so many categories we're excited to start offering."Following Kennedy's announcement on Wednesday, Hims Chief Medical Officer Dr. Patrick Carroll applauded the news as a move away from the "gray market," saying the goal is to bring peptide therapy into regulated, physician-led care."Our medical team believes certain peptide therapies hold meaningful potential in helping Americans live healthier lives, and we are actively exploring how to expand access in a way that will be aligned with FDA guidance," Carroll said.Leerink Partners called the news that the FDA will review peptides for the compounding list a positive outcome that could give Hims a clearer regulatory path to scale peptide therapies. Even so, the firm said it will take time for peptides to boost the company's bottom line."This would not immediately translate into revenue, but would seemingly be a growth avenue that HIMS would push hard on," said Leerink analyst Michael Cherny, who has a hold-equivalent rating on the stock and a $25 price target. It was trading around $26 a share Thursday.For now the opportunity is still early, and clinical evidence supporting many peptide therapies is still limited.Of the dozen peptides listed by Kennedy for consideration on the compounding bulk list, one — MK-677 — is often treated as an illegal drug when sold for human consumption. The growth hormone has also been banned by the World Anti-Doping Agency. Other peptides on the list, such as GHK-Cu and Semax, which are used for cosmetic or cognitive enhancement, are generally viewed as less controversial, but still lack robust scientific backing.Kennedy — who has supported many medical treatments and food options outside of those backed by mainstream science — was asked about his plans for expanding peptide therapies during a House Ways and Means Committee hearing Thursday."Peptides were not supposed to be regulated," Kennedy said, arguing the Biden administration restricted the use of peptides due to safety concerns that he considers unfounded. The FDA process is just beginning, and the July meeting will be advisory only, so change is not expected to be immediate. Even so, investors are already focusing on what replaces GLP-1 driven growth for Hims, and peptides are emerging as one of the clearest candidates so far.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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