The telehealth company has been selling a copycat version of a popular obesity drug during the recent shortage.

Key TakeawaysHims & Hers Health shares swooned after the Food & Drug Administration said the active ingredient in Ozempic and Wegovy is no longer in short supply.The company makes compounded versions of weight-loss drugs under an FDA rule that applies when the originals are difficult to obtain.

Compounding pharmacies producing cheaper semaglutide products have been given notice they will soon have to stop, as the drug is no longer on the FDA shortage list.