BTIG says market demand for lower cost GLP1-s should benefit LifeMD, Him & Hers

BTIG analyst David Larsen notes that various news reports are highlighting that a federal judge has granted the FDA’s request for a voluntary remand and stay in the ongoing legal case challenging the agency’s decision to remove tirzepatide from the drug shortage list. In the firm’s view, this means compounding pharmacies can continue filling prescriptions for compounded tirzepatide under certain conditions until the FDA completes its review. This news comes following a lawsuit that the Outsourcing Facilities Associatio” filed, stating that the FDA made a “reckless and arbitrary decision,” via an unlawful process, to deprive patients of type 2 diabetes and obesity medications. BTIG is positively surprised by the forceful and aggressive tone of the OFA language in the lawsuit, and it seems like the massive market demand for lower cost solutions for GLP-1s or compounded versions for them is high. This demand has led to at least some temporary relief for compounding pharmacies, and will benefit both LifeMD (LFMD) and Hims & Hers (HIMS), the firm says. BTIG has a Buy rating on LifeMD with a price target of $12 on the shares.