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.

Shares of Hims & Hers Health ( HIMS -24.30%) are falling on Friday. The company's stock lost 23.2% as of 1 p.m. ET and lost as much as 26.1% earlier in the day. The move comes as the S&P 500 lost 1% and the Nasdaq Composite lost 1.3%.