Health platform Hims & Hers Health Inc. announced Monday that it's rolling out injectable weight-loss drugs that cost a fraction of the price of competitors Wegovy and Ozempic.
Hims & Hers says its GLP-1 medications contain the same active ingredients as its rivals, but the price starts at $199 per month. For comparison, Wegovy costs around $1,350 per month, and Ozempic is priced at around $935 without insurance. Novo Nordisk produces both drugs.
"We’ve leveraged our size and scale to secure access to one of the highest-quality supplies of compounded GLP-1 injections available today," Hims & Hers co-founder and CEO Andrew Dudum said in a statement announcing the new drugs. "We’re passing that access and value along to our customers, who deserve the highest standard of clinical safety and efficacy to meet their goals, and we're doing it in a safe, affordable way that others can’t deliver."
Hims & Hers stock surged more than 27% to a three-year high following the news.
GLP-1 agonists are a class of Type 2 diabetes drugs that improves blood sugar control but may also lead to weight loss. Semaglutide, which is the active ingredient in Novo Nordisk's Wegovy and Ozempic, as well as tirzepatide, which is the active ingredient in Eli Lily's Mounjaro and Zepbound, are considered GLP-1 drugs.
The drugs have surged in popularity in recent years as people touted the drugs' weight-loss effects. In 2023, one in 60 adults were prescribed a GLP-1 medication, according to the American Pharmacists Association.
By 2030, the number of GLP-1 users in the U.S. could reach 30 million, or around 9% of the overall population, according to JPMorgan. The market is projected to exceed $100 billion by that same year, "driven equally by diabetes and obesity usage," the firm noted.
HIMS & HERS CEO WALKS BACK PRAISE FOR ANTI-ISRAEL PROTESTORS AFTER STOCK DROPS
Dudum, whose company provides telehealth services and prescription medication for issues such as hair loss, erectile dysfunction and skin problems, made headlines earlier this month after he praised the "moral courage" of anti-Israel campus protesters and encouraged them to apply for jobs at the health and wellness company.
The CEO wrote on May 1 in a post on X that "Moral courage > College degree." He added, "If you're currently protesting against the genocide of the Palestinian people & for your university's divestment from Israel, keep going. It's working."
He later walked back those comments days later, saying they were "misconstrued by some" after the company's stock dipped.
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"I, in no way condone nor support acts or threats of violence, antisemitism, or intimidation and there is absolutely no justification for violence on our campuses," Dudum wrote. "Every student deserves to feel safe without fear of harm or being targeted for who they are. I am deeply saddened that my support for peaceful protest has been interpreted by some as encouraging violence, intimidation, or bigotry of any kind."
FOX Business' Eric Revell and Daniella Genovese contributed to this report.
