Telehealth firms rise as FDA to revisit Lilly's weight-loss drug shortage
Updates
** Shares of telehealth firms WeightWatchers WW.O and Hims & Hers Health HIMS.N rise 5.4% and 10.2%,respectively
** US FDA on Friday said it will reconsider a decision to bar drug compounders from selling their own versions of Eli Lilly's LLY.N widely popular weight-loss and diabetes drugs
** In response to a lawsuit brought by an industry group, FDA said it would allow compounding facilities to keep providing the drugs while it reviews whether there is a shortage of tirzepatide
** Tirzepatide is the active ingredient in Lilly's Mounjaro and Zepbound, and was removed from the FDA's shortage list in early October
** Both the telehealth firms, and 23 and Me's ME.O unit, LemonAid Health, offer compounded versions of semaglutide, the active ingredient in rival drug Wegovy made by Novo Nordisk NOVOb.CO
** HIMS shares are "bound to see continued volatility ... on headlines tied to the overall supply availability of all things GLP-1s-related" - brokerage Leerink Partners
** LLY shares up marginally at $934.21, stock has gained ~60% so far this year
** As of last close, WW was down ~80%, while HIMS shares have more than doubled in value YTD
Reporting by Bhanvi Satija in Bengaluru
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