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Hims & Hers rallies as FTC suit targets privacy and data sharing
After the FTC announced legal action over health data sharing, the stock was up 29% since the announcement, while Novo Nordisk partnerships supported more than 125,000 Wegovy shipments in Q1.
Hims & Hers Health shares have extended their rally despite an FTC lawsuit alleging deceptive and unlawful privacy practices tied to data sharing and billing practices. According to MarketBeat, the FTC, joined by Utah and California through Los Angeles County Counsel, filed the complaint in the U.S. District Court for the Northern District of California on July 29, targeting how the telehealth platform handles consumers’ sensitive health information.
The complaint alleges Hims & Hers shared sensitive health data with third-party advertising platforms, including Meta Platforms and Snap, despite patient privacy promises. MarketBeat notes this follows a broader FTC push against healthcare firms sharing sensitive data with outside companies without clear consumer knowledge or permission.
Despite the legal overhang, MarketBeat reports investors have reacted calmly, with Hims & Hers shares up 29% since the FTC announced the suit. The coverage also points to potential business offsetters, including a shift from marketing compounded GLP-1 to brand-name drugs through partnerships with major pharmaceutical manufacturers.
MarketBeat highlights Hims & Hers’ strategic agreement with Novo Nordisk, which resulted in fulfillment of more than 125,000 Wegovy shipments in Q1, and the company’s expectation of adding more than 100,000 new weight-loss subscribers per month going forward.
It also flags employer coverage decisions as a tailwind, noting preparations by some employers to drop GLP-1 weight-loss drug coverage including Wegovy, Ozempic, Zepbound, Mounjaro, and other related products. The article says the lawsuit outcome is still unknown as Hims & Hers looks ahead to Q2 earnings.