Follow your favorite stocks
Digital pharmacy startup Hims & Hers Health is making waves in the health industry with its latest offering: access to compounded GLP-1 weight loss injections. This announcement has caused the company’s shares to soar by more than 30% on Monday morning.
Hims & Hers, known for its direct-to-consumer treatments for conditions like erectile dysfunction and hair loss, launched a weight loss program in December. However, GLP-1 medications like Ozempic and Wegovy, which have gained significant popularity, were not previously included in the program.
Now, customers can obtain compounded GLP-1 medications through a prescription from a licensed healthcare provider on the Hims & Hers platform. The company has plans to make branded GLP-1 medications available to its customers once a consistent supply is secured.
The cost of the company’s oral medication kits starts at $79 per month, while the compounded GLP-1 injections will start at $199 per month. The addition of compounded GLP-1s to its portfolio has boosted Hims & Hers’ revenue expectations, with the company projecting over $100 million in revenue from its weight loss program by the end of 2025.
The GLP-1 market, currently dominated by pharmaceutical giant Novo Nordisk, has faced supply constraints in recent months due to expanded approval from health regulators and increased health coverage. These medications mimic a hormone produced in the gut to control appetite and regulate blood sugar levels. When shortages occur, compounded versions can be prepared by certain manufacturers if they meet FDA requirements. However, it’s important to note that the FDA does not review the safety and efficacy of compounded products.
In a January release, the FDA advised against using compounded GLP-1 drugs if an approved drug like Wegovy is available. Despite these concerns, Hims & Hers CEO Andrew Dudum expressed confidence in the consistent supply of compounded medications. The company has spent the past year familiarizing itself with the GLP-1 supply chain and has partnered with a leading generic manufacturer in the country that adheres to FDA oversight. This partnership ensures guaranteed volume and supply for Hims & Hers customers.
The introduction of compounded GLP-1 weight loss injections marks another milestone for Hims & Hers as it continues to expand its offerings in the digital health space. With its commitment to providing accessible and convenient healthcare solutions, the company is well-positioned to make a significant impact on the industry. Investors and customers alike are eagerly watching as Hims & Hers revolutionizes the way people approach their health and wellness journeys.
