Recent news from Hims & Hers adds to our discomforting thought that compounded GLP-1s have become little more than a ploy to grab quick money from vulnerable consumers. Thursday, the company announced they are launching a compounded semaglutide tablet to compete with Wegovy.

Reporting from Reuters suggests this announcement aimed to spark gains in their stock price. But it failed miserably. After the announcement, the stock price for Hims & Hers rose briefly and then ended the day having dropped 4% from its price before the announcement. This is a lousy way to run a business.

It doesn’t do much for its customers, either.

A Hard Look at Dubious Compounding Schemes

We recently sat down with Nutrition Diva Monica Reinagel for a hard look at compounding schemes in sketchy telehealth settings that have more in common with a med spa than a healthcare clinic. This started as a legitimate emergency response to supply shortages. But now it’s morphed into something altogether different. This is a phenomenon fraught with regulatory ambiguity, safety concerns, and ethical questions.

Reinagel was blunt, saying that many of these schemes are ethically questionable, offering a “quick fix, followed by an off-ramp.” Clearly, they are more fixated on making a quick profit, promoting weight loss more than than health gains.

Calling Foul

Reaction to the “semaglutide pill” scheme from Hims & Hers has been swift and harsh. Novo Nordisk called it “illegal mass compounding,” promising legal and regulatory action. FDA seems to concur, with Commissioner Marty Makary saying:

“FDA will take swift action against companies mass-marketing illegal copycat drugs, claiming they are similar to FDA-approved products.

“The FDA cannot verify the quality, safety, or effectiveness of non-approved drugs.”

Dodging regulations that assure health and safety is not a sustainable business model. Given that the stock of Hims & Hers has lost half of its value over the last year, it certainly seems that investors have figured this out.

Click here for our conversation with Reinage, here and here for more on the flutter of controversy around the dubious “semaglutide pill” from Hims & Hers.

Virtual Scam, illustration by Mohamed Hassan / Wikimedia Commons