The U.S. FDA has officially declared that Novo Nordisk’s (NVO) popular diabetes and weight loss therapies, Ozempic and Wegovy, are no longer in

HIMS stock plunged by 18% after the FDA news that resolved a shortage of weight-loss drugs like Ozempic and Wegovy, which previously allowed Hims & Hers to sell compounded alternatives. Compounded versions were permitted during the shortage but are now restricted unless they meet specific exceptions.

Hims & Hers Health acquired a peptide facility to strengthen its U.S. supply chain and meet demand for personalized treatments. Also, in another development, FDA resolves semaglutide injection shortage.

The telehealth company has been selling a copycat version of a popular obesity drug during the recent shortage.

The Food and Drug Administration said on Friday that the shortage of semaglutide injection products, such as Novo Nordisk's Wegovy, has been resolved. FDA's update led to renewed uncertainty for a growing group of telehealth companies such as Hims & Hers that have built businesses around offering cheaper copies of the branded medications.