Shares of Hims & Hers Health (NYSE:HIMS) stock are skyrocketing higher by over 25% after the telehealth company announced that it would provide access to GLP-1 weight-loss injections.
Hims & Hers has partnered with an undisclosed manufacturer of generic and 503B compounded injectable medications to provide the injections. The process of compounded drugs occurs when pharmacies make copies of a drug experiencing a shortage and is allowed in the U.S. Compounded drugs are also less scrutinized by the Food and Drug Administration (FDA) when compared to branded drugs.
The injections will have the same active ingredient as Novo Nordisk’s (NYSE:NVO) Ozempic and Wegovy medications. Prices will start for as low as $199 per month, much lower than the $1,350 per month price tag that Wegovy costs without insurance. Embedded in Hims & Hers’ price are unlimited consultations with a medical professional.
“It’s gonna be a big part of the weight loss category going forward,” said CEO and co-founder Andrew Dudum. “Our belief is that compounding can be done very safely, if done correctly.” Dudum added that the company evaluated over 100 companies to partner with before ultimately choosing one.
HIMS Stock: Hims & Hers to Begin Offering GLP-1 Injections
Hims & Hers added that it would provide branded GLP-1 injections once supply catches up with demand. In the upcoming months, Hims & Hers will work towards providing access to compounded tirzepatide, which is the active ingredient in Eli Lilly’s (NYSE:LLY) Mounjaro and Zepbound drugs.
The company began venturing into the weight-loss industry last December and expects to generate over $100 million from its weight-loss offerings by the end of 2025. Hims & Hers also offers weight-loss oral medication kits that start at $79 per month.
The market for weight-loss drugs is sizable. Hims & Hers notes that 70% of American adults are either overweight or obese. GLP-1 can help alleviate this and reduce the risk of complications like diabetes and cardiovascular disease along the way.
The news is further adding to HIMS stock’s year-to-date gains, which stand at nearly 92% at the time of writing. This comes after the company reported first-quarter revenue growth of 46% to $278.2 million.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
