November 16, 2024

Hims & Hers Health Stock Takes Hit as Eli Lilly Offers Cheaper Weight-Loss Drug

business people have a meeting about company statistics
21



Key Takeaways

  • Hims & Hers Health shares declined Tuesday after Eli Lilly said it would be offering a lower-priced version of its popular Zepbound weight-loss treatment.
  • Lilly explained that the new product would be sent directly to consumers.
  • Hims & Hers recently began offering a copycat version of Novo Nordisk’s Wegovy and Ozempic, and planned to have one for Zepbound in the near future.

Shares of Hims & Hers Health ( HIMS ) sank in intraday trading Tuesday on new competition for lower-priced weight-loss drugs from Eli Lilly ( LLY ).

Lilly announced that it would be selling the two lowest doses of its popular injectable obesity drug Zepbound in single-use vials that patients would measure themselves.

Lilly said those would be priced at half the cost of the pre-filled vials currently prescribed. In addition, the medicine would be sent through the company’s LillyDirect self-pay channel, helping those not eligible for Zepbound’s savings program or without insurance coverage to afford it.

Hims & Hers Offers Reduced-Priced Copies of Popular Drugs

That was bad news for Hims & Hers Health, which offers direct-to-consumer copycat versions of prescription drugs at reduced prices. In May, it began selling an injectable with the same key ingredient that’s in Novo Nordisk’s ( NVO ) popular weight-loss treatments Wegovy and Ozempic. Hims & Hers also said in its recent earnings call that it planned to have one similar to Zepbound “in the near future.”

Hims & Hers Health shares sank 7% to $15.08 as of 11:15 a.m. ET Tuesday but remain nearly 70% higher year-to-date.

OK