By Mackenzie Tatananni

Hims & Hers Health stock was surging Thursday following the announcement of a major regulatory pivot that clears the path for the telehealth giant's next growth phase.

The gains followed an announcement from Health and Human Services Secretary Robert F. Kennedy Jr., who proclaimed Wednesday that the U.S. government would loosen regulations for 12 peptides, framing the decision as a "long-overdue action to restore science, accountability, and the rule of law."

The peptides in question were banned for use in compounding pharmacies back in 2023. Kennedy said regulators would roll back a Biden-era initiative to classify peptides as Category 2 substances, designated due to their safety risks including cancer and heart problems.

BPC-157, a synthetic peptide explicitly flagged in Wednesday's announcement, is often touted for tissue healing, but was moved to Category 2 due to concerns over its potential to stimulate blood vessel growth in ways that could promote tumor growth.

The reversal of the decision is good news for Hims. The telehealth provider, which made a name for itself in the business of weight-loss drugs, has indicated it was looking to enter the peptide business.

Semaglutide, the active ingredient in Novo Nordisk's Wegovy, is itself a peptide, and one Hims began offering in 2024 on a compounded basis. However, the company directly signaled its plans to explore different types of peptides through the acquisition of a California-based manufacturing facility in February.

Shares ended Wednesday's session up 14% and extended the rally in premarket trading Thursday, gaining 9%. Futures tracking the benchmark S&P 500 were up 0.1%.

Hims in March struck an agreement with Novo Nordisk after trading blows for months. Per the truce, the telehealth provider agreed to sell branded Wegovy and Ozempic injectables, as well as branded oral Wegovy rather than its own compounded version of the pill.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 16, 2026 08:46 ET (12:46 GMT)

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