Guidance Adjusted Down, Investors Now Want to See If It's The True Bottom

Research evidence excerpt

Guidance Adjusted Down, Investors Now Want to See If It's The True Bottom

HIMS GLP Contribution

branded Novo products will push revs higher at the expense of margins (product margin ex- Margins per Script

membership fee is minimal). Compounded vs Branded GLPsCompounded (Using Branded Wegovy

With HIMS shutting down marketing related to compounded GLPs, all its new GLP patients are Revenue Per Month '25 Ests) $175 Run Rate* $398• Margins 58.8% 26.2% being dispensed branded GLPs. However, existing patients are still getting their scripts filled . CM per script $103 $104

with compounded versions, and as these scripts renew, expect them to get filled with the lower Source:* AssumesJefferies,12-monthCompanyNovo subscriptionData plan and run rate

margin branded version. telehealth fees.

With the strategic shift in HIMS' GLP strategy, mgmt needs to execute on taking as much GLP•

market share as they can in order to inflect growth rates and margins going forward.

Peptides Opportunity Coming. Given the government's focus on pushing peptide availability, we

look to the July FDA meeting on this product category as a potential positive catalyst for the stock.

That said, we don't expect HIMS to commercialize peptide products instantaneously after that FDA

meeting. Mgmt is being methodical about their peptide strategy, while we also note that HIMS

has the assets (i.e., compounding pharmacies) and capabilities/experience to roll out a portfolio of

peptide products months after any FDA approval for the U.S. re-introduction of this drug class.

Brian Tanquilut * | Equity Analyst

Guide Rebased, Legal Risk Gone, Time To Execute. Heading into the Q1 print, we had expressed (615) 963-8338 | btanquilut@jefferies.com