Shares of Hims & Hers Health Inc. (NYSE: HIMS) plunged 13.05% in intraday trading on Friday, as investors reacted to comments from U.S. President Donald Trump suggesting imminent price reductions for popular weight-loss drugs. The sharp decline effectively erased the stock's recent gains, including a 16% surge earlier in the week.

The selloff was triggered by Trump's statements during a White House event on fertility treatments and drug pricing. When asked about a specific drug that would become less expensive, Trump mentioned Ozempic, a diabetes treatment often used off-label for weight loss. This announcement sent shockwaves through the weight-loss drug market, affecting not only major manufacturers like Novo Nordisk and Eli Lilly but also companies like Hims & Hers that offer compounded versions of these medications.

Hims & Hers, which has built part of its business model around providing more affordable alternatives to brand-name GLP-1 drugs, could face significant challenges if the prices of original medications decrease substantially. The company generated over $225 million in revenue from its GLP-1 offerings in 2024, and a reduction in price disparity between brand-name and compounded versions could potentially erode its market share and profitability. As the market digests the implications of potential price cuts, investors appear to be reevaluating their positions in companies exposed to the weight-loss drug sector.