Hims & Hers Health (NYSE: HIMS) stock soared 28% in intraday trading Monday after the telehealth company announced the addition of GLP-1 injections to its weight-loss portfolio.
Hims & Hers Health (HIMS), a prominent player in the telehealth industry, recently revealed plans to include GLP-1 injections in its range of weight-loss drugs.
This decision comes amidst a burgeoning market for weight-loss treatments, driven by a surge in demand for drugs containing GLP-1, an active ingredient found in medications like Mounjaro and Zepbound from Eli Lilly (LLY), as well as Ozempic and Wegovy from Novo Nordisk (NVO). The popularity of these drugs has significantly boosted the revenues and stock prices of Eli Lilly and Novo Nordisk.
Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) have been working diligently to ramp up production capacity to meet the rising demand. The entry of Hims & Hers Health into this arena underscores the strategic move of the company to leverage this growing trend.
Andrew Dudum, the co-founder and CEO of Hims & Hers, underscored the company’s commitment to providing high-quality compounded GLP-1 injections, stating,
“We’ve leveraged our size and scale to secure access to one of the highest-quality supplies of compounded GLP-1 injections available today.”
Pricing Model and Distribution Plan
Hims & Hers aims to offer competitive pricing for its weight-loss treatments, with plans starting at $79 per month for oral prescriptions and $199 per month for compounded GLP-1 injections. This pricing model positions Hims & Hers as a more affordable alternative for individuals seeking weight-loss treatments, especially when compared to the varying costs associated with Ozempic and Mounjaro, which can range from $25 to over $1,000 per month depending on insurance coverage and eligibility for certain savings programs.
The company plans to distribute these injections through its pharmacy partners and aims to expand its offerings once a consistent supply is ensured.
Guidance Doesn’t Include Weight-Loss Drug’s Impact
Despite the potential impact of the weight-loss drugs on future earnings, Hims & Hers Health clarified that its current earnings guidance does not include these projections. The company has not provided an update to its guidance at this time.
Hims & Hers Health (NYSE: HIMS) Stock Movement
HIMS stock surged 27.66% on Monday, closing at $18.60. This marks a 44.30% increase over the week. Trading volume soared to 70,740,856 shares, significantly higher than the average daily volume of 7.72 million.
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