Hims & Hers Health (NYSE: HIMS) announced Thursday that its healthcare providers can now prescribe Eli Lilly's (NYSE: LLY) Zepbound vials, the Zepbound KwikPen, and the oral pill Foundayo through LillyDirect, marking a significant expansion into branded obesity treatments. The move follows a similar partnership with Novo Nordisk (NYSE: NVO) in March, positioning Hims as a one-stop telehealth platform for FDA-approved GLP-1 drugs.
Strategic Shift Away from Compounded Drugs
This development comes as U.S. regulators tighten oversight on compounded GLP-1 medications, which are pharmacy-mixed versions of branded drugs that proliferated during supply shortages. Hims has already stopped advertising compounded GLP-1s on its U.S. site, signaling a strategic pivot toward branded offerings. The company now claims to offer the full suite of FDA-approved GLP-1 therapies, including Novo Nordisk's Wegovy and Ozempic.
Pricing and Membership Details
Hims has set competitive pricing for the new options: Foundayo starts at $149 per month, while Zepbound vials and the KwikPen are available from $299 per month. For comparison, Wegovy pills are listed at $149 per month. The company also charges a separate weight-loss membership fee of $39 for the first month and $149 per month thereafter. Lilly's own direct-to-consumer pricing aligns with these figures, with Foundayo at $149 and Zepbound at $299 for self-pay patients.
Market Context and Competitive Landscape
The telehealth company is entering a rapidly evolving market where drugmakers are slashing prices and expanding direct sales channels. Novo Nordisk recently began offering cheaper Wegovy subscriptions through telehealth platforms like Ro, WeightWatchers, and LifeMD. Meanwhile, Lilly continues to expand LillyDirect, which combines pharmacy fulfillment, care navigation, and connections to third-party telehealth services. 'Patients want easier and clearer ways of facilitating payment,' said Ed Cinca, Novo Nordisk's senior vice president of marketing and patient solutions, noting the shift in patient expectations toward a consumer-like experience.
Investor Reaction and Analyst Views
Hims shares initially jumped to $32.16 following the announcement but later retreated to $28.89, essentially flat in early trading. Eli Lilly and Novo Nordisk shares edged slightly lower. Analysts remain cautious about Hims' long-term profitability. Michael Cherny of Leerink Partners noted that while the Lilly deal could expand access, it's unclear where Hims fits in the value chain. Morningstar's Kadyn Kim flagged 'a lot of question marks' regarding potential litigation and regulatory changes.
Broader Implications for the Obesity Drug Market
The obesity drug market is undergoing a seismic shift as affordability remains a persistent challenge. Last week, Lilly CEO David Ricks acknowledged that GLP-1 medicines have largely remained 'for people with means,' despite some price declines. The tension between expanding access and maintaining margins, coupled with inconsistent insurance coverage, is likely to define the next phase of competition in the sector.
Lilly's Push into Oral GLP-1s
Lilly's once-daily GLP-1 pill, Foundayo, received FDA approval on April 1 and reached wide distribution through retail pharmacies and telehealth outlets by April 9. 'Path from prescription to doorstep as simple as possible,' said Ilya Yuffa, president of Lilly USA, describing the company's approach. This rapid rollout underscores the intensifying race to capture market share in the oral weight-loss drug segment.
