Hims & Hers Health, a telehealth company, announced on Tuesday that it will begin offering Eli Lilly’s weight-loss drug on its platform. This move is part of the company’s strategy to diversify its product range in anticipation of potential restrictions on selling generic versions of Novo Nordisk’s obesity drug.
Following the announcement, Hims & Hers’ stock rose by 5.1%. The company revealed plans to expand its weight-loss treatments by introducing branded versions of Lilly’s tirzepatide. Tirzepatide is the active ingredient in Zepbound, a weight-loss medication, and Mounjaro, a diabetes treatment. In addition, Hims & Hers will also offer generic versions of Novo Nordisk’s diabetes drug, liraglutide. Previously, the telehealth firm only provided less expensive alternatives to Novo’s weight-loss drug Wegovy.
Jefferies analyst Michael Cherny noted that while the expansion of product offerings is a positive development, Zepbound’s high price of $1,899 per month may limit its accessibility for some customers.
The inclusion of Lilly’s drugs is expected to broaden Hims & Hers’ customer base as the company adjusts to the end of the shortage of Novo’s drugs. Cherny believes this shift will help the company navigate the changing market landscape.
Hims & Hers stock had fallen by 40% since the U.S. Food and Drug Administration (FDA) removed Novo Nordisk’s Wegovy and diabetes drug Ozempic from its shortage list on February 21. The scarcity of these drugs had allowed companies like Hims & Hers to sell cheaper versions of Novo’s semaglutide.
In February, Hims & Hers stated that it could not guarantee the continued availability of compounded semaglutide, which had been sold as an alternative to Wegovy.
The FDA also set deadlines for compounded drug manufacturers to cease production of Wegovy copies. State-licensed compounding pharmacies have until April 22, while outsourcing facilities have until May 22, unless a court injunction is issued.
Lilly clarified that Zepbound can be prescribed by any licensed healthcare professional and emphasized that it has no affiliation with Hims & Hers.
