Hims & Hers Health Inc. shares lost as much as a fifth of their value in after-market trading Monday after the company said that it will soon stop selling some compound weight-loss drugs.

Hims & Hers on Monday released fourth-quarter results that disappointed on gross margin and sparked concerns about the future of its weight loss business.

Hims & Hers said on Monday that it may no longer be able to sell compounded versions of the weight-loss drug made by Novo Nordisk because its pathway to do so closed when the U.S. FDA declared Friday that the drug's shortage was over.

After the FDA removed semaglutide injection products from a shortage list, compounders like Hims have 60-90 days to stop making copies.

Hims & Hers stock tumbled after the company confirmed it would stop selling some compounded weight-loss drugs.

Shares of Hims & Hers Health tumbled 18% premarket on Tuesday as Wall Street analysts questioned the telehealth provider's lofty sales forecast in the face of looming restrictions on compounded weight-loss drugs.

Hims & Hers (HIMS) stock took a steep dive, dropping more than 27%Tuesday morning — even after the millennial-focused telehealth company reported soaring sales for 2024 just the night before.