Direct-to-consumer pharmaceutical startup Hims & Hers Health is making waves in the industry by offering injectable GLP-1 weight loss drugs at a fraction of the cost of brand-name competitors like Wegovy and Ozempic. Shares of the telehealth company surged over 30% following the announcement, with Hims & Hers providing compounded GLP-1 drugs starting at $199 a month, significantly cheaper than the brand-name versions. These injectables use the same active ingredients as the branded counterparts, which are currently facing shortages in some doses.
GLP-1 drugs, which help people feel fuller and less hungry, can be expensive when sourced from pharmaceutical giants like Novo Nordisk. Hims & Hers Health’s entry into the market offers a more affordable alternative, with the compounded injectables having consistent availability. The company also plans to sell brand-name versions of GLP-1 drugs once supply rebounds. CEO Andrew Dudum emphasized the focus on providing high-quality and affordable medications to customers to help them achieve their weight loss goals in a safe and effective manner.
Customers interested in obtaining these medications will require a prescription from a medical provider based on medical necessity. Hims & Hers Health is strategically capitalizing on Americans’ growing interest in weight loss by offering a comprehensive weight loss program that is projected to generate over $100 million in revenue by 2025. The program currently sells oral weight-loss medications at a lower price point, making it accessible to a broader range of consumers looking to address their weight management needs.
Compounded drugs, customized by pharmacists for individual patients or in response to drug shortages, are not regulated by the FDA as rigorously as approved medications. While the agency warns against the use of compounded medications when approved alternatives are available, some consumers have turned to compounded GLP-1 medications due to supply constraints of popular brand-name drugs. Reports of adverse events from patients using compounded semaglutide medications underscore the importance of ensuring the safety and efficacy of these medications, particularly in the context of rising demand and limited supply of traditional weight loss drugs.
In adapting to market demands and consumer preferences, Hims & Hers Health is carving out a niche for itself in the pharmaceutical industry by offering cost-effective and accessible weight loss solutions. By leveraging partnerships with manufacturers of compounded medications, the company is able to provide a reliable supply of GLP-1 injectables to meet the needs of customers seeking affordable and reliable weight loss options. While the competitive landscape in the weight loss market continues to evolve and face challenges related to supply chain disruptions, Hims & Hers Health is positioning itself as a player to watch in the direct-to-consumer pharmaceutical space.
