Hims stock surged Tuesday after the compounding pharmacy said it would sell Eli Lilly's branded weight-loss drug, Zepbound, on its telehealth platform.
The news is a big boost for Hims & Hers Health. Last month, the Food and Drug Administration banned knockoff versions of tirzepatide, the chemical backbone behind Zepbound, saying the drug is no longer in shortage. The decision left compounders scrambling to fill an expected hole in their topline. Some companies said they would sell personalized dosages of the compounded drug.
But Hims & Hers is instead planning to sell branded Zepbound. Patients also will be able to access generic liraglutide through Hims' platform. Liraglutide, known by the brand name Victoza, is a type 2 diabetes treatment from Novo Nordisk. Like Novo's Wegovy, it mimics the GLP-1 hormone to decrease hunger and improve blood sugar.
Hims stock jumped 5.3%, closing at 31.10. Shares are making moves to retake their 50-day line.
Hims Stock: Navigating The FDA's Decision
Hims & Hers isn't the only compounder to sell branded Zepbound. Telehealth firms Teladoc Health, LifeMD and Ro also sell branded Zepbound on their platforms.
Eli Lilly says it doesn't have any affiliation with Hims & Hers.
"Zepbound can be prescribed by any licensed healthcare professional," a company spokesperson said in an email to Investor's Business Daily. "People who are commercially insured with coverage for Zepbound may be eligible to pay as low as $25. For those who self-pay, Zepbound is available starting at $349 per month on LillyDirect."
Hims says selling branded Zepbound provides the best option for each patient.
"For some, that can mean access to a broad range of weight loss medications, including compounded, generic, and branded options," Hims & Hers said in a news release. "For others, it might mean working with their care team to better understand their diet, exercise, and behavioral patterns in the app."
Hims stock has been on something of a roller-coaster recently. Shares hit a record high on Feb. 19, helped by plans to introduce at-home lab testing through it platform. In the weeks since, shares have retreated and are now about 54% off that record high.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
