welcome investors in this video we're going to talk about IMS and Earth ticker symbol HS which is now falling over 5% in the pre-market because of some news that I'm going to address right away after this drop the stock is now down more than 40% from its recent all-time high and as you know IM is my second largest position for a long time and so I'm going to tell you my honest opinion on this video and what I'm doing following these news without further delays let's check what happened basically Eli ly uh released a new form of its weight loss drug zap bounds for all of the priz to boost access and Supply the move also aims to expand the US supply of this drug amid soaring demand and ensure patients are safely accessing the treatment as cheaper copycat versions of the drug G traction if you don't understand why this made IM stock fall apart it's basically because IM is offering one of these cheaper copycat versions a compounded glp1 solution at a much cheaper price than Eli ly and Nova Nordisk to address this lack of supply and so the market is afraid that this might cause the demand for imp glp1 solution to decrease considerably I'm making this quick video because I saw a few people panicking about this so I want to share my honest Thoughts with you first the fact that they're doing this just confirms that IM is grabbing a considerable part of the demand and so I'm expecting Q3 results to be very interesting second as you may read here the company is now offering 2.5 mgram and 5 mgram single dose vials of Zap Bound for $399 per month and $549 per month respectively to reach direct to Consumer website so basically in Solutions continues to be significantly cheaper than this so even though some people might consider buying the original one for a price a bit larger I wouldn't say this will steal most of im's potential customers not even a large part of them I would say thirdly as you probably know IM only started to offer gp1s because there's currently a shortage of these medications and so the FDA allowed companies like IM to offer compounded versions of it many people ask me if this will change that and I can say based on uh what I've read so far that this move will not change the FDA shortage status at least for now so essentially IM will continue to be able to sell its solution at least in the short term and finally and most importantly most people need to understand that im's investment thesis is not dependent on gp1s at all when someone tells you that IM is condemned to fail because it can only sell gp1s during the the shortage just throw out this chart do you know how much of these numbers come from glp 1s none zero yet the revenue is up more than 10x over the past 5 years the IM investment Tes has never been about that early investors like me who started to buy in the single digits know it don't get me wrong this is a great Catalyst that is for sure accelerating the company's growth and we can see that based on a full year guidance which implies a growth of like 60% year-over-year but the company would be doing perfectly fine without it and would already be super cheap without the gp1 contributions not even its weight loss segment is dependent on gp1s im's oral medication is performing incredibly well on its own that segment which was launched less than a year ago in December of 2023 was the fastest ever to reach a $100 million annual run rate and he SP to continue gaining momentum new Specialties usually take 18 to 24 months to reach 100,000 subscribers according to the CEO Andrew dham and weight loss reached that milestone in just seven months it's completely mind-blowing and this does not include gp1s guys this is just based on oral medication that ins started to offer way before gp1s as I said while these gp1s will give a significant boost in Revenue news and I mean yes it's a great Catalyst for sure but im's non glp1 weight loss solution is also performing incredibly well and is not dependent on any FDA shortage MCO believes the company will still be able to sell uh these gp1s after the shortage ends if you listen to the less earning scull you will understand that for sure because uh the company now acquired a compounding 503b pharmacy which will make easier for IM to uh personalize also the glp1 dosages for each customer but nonetheless this segment has a huge potential even without injectable Solutions overall I guess you can easily understand my take on this yes it's something to keep an eye on and we must definitely be aware of all the risks am faces but I don't see these having a big impact on the company and so in my opinion this Market reaction isn't Justified at all I recently bought a lot more shares at around .30 per share because I thought it was crazy the stock not being up after such incredible Q2 results so right now I'm not buying more again at least for now but I remain totally bullish on the company it was the first time in M that I bought more shares increasing my average cost from 8.51 to $10.07 per share IM has never been this cheap in terms of free cash flow multiples so I think it's a perfect opportunity to take advantage of whether to initiate a position if you don't have one yet or to buy more if you're already owning it that's all for today guys I really hope you enjoy the video it was a quick one just to update you on the recent news as I have received a few messages asking my opinion about it don't forget that I'm not a financial adviser so you should do your own research thanks for watching and see you in the next one