Hims & Hers Health shares were headed for their biggest single-day plunge as Wall Street analysts questioned the telehealth provider's lofty sales forecast on Tuesday amid looming restrictions on compounded weight-loss drugs.

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

Investors are scrambling to adjust, after the telehealth specialist Hims & Hers said it would stop selling an alternative to Novo Nordisk's Wegovy and Ozempic weight-loss drugs. Hims stock stood about 17% lower at under $42.

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 Health reported fourth-quarter results on Monday that beat analysts' expectations, but the stock sank in extended trading.

Shares of Hims & Hers Health (HIMS) shares plunged in late trading Monday after the company reported falling margins as costs rose, overshadowing better-than-expected sales. The online healthcare provider’s fourth-quarter revenue nearly doubled year-over-year to $481.

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.