Hims & Hers Adds Eli Lilly's Zepbound To Weight-Loss Offerings: Retail Excited Despite BofA Seeing 'Immaterial' Sales Impact
According to Bloomberg, a monthly prescription of Zepbound via Hims' platform would cost $1,899 — $800 more than Lilly's list price for the drug.
Shares of Hims & Hers Health Inc. ended Tuesday over 5% higher, lifting retail investor mood after the telehealth company announced it was adding two new weight-loss medications to its platform.
According to a post on the company's website by Craig Primack, SVP of Weight Loss, Hims & Hers has expanded its weight loss offerings by adding access to generic liraglutide and branded tripeptides, including Eli Lilly's (LLY) Mounjaro and Zepbound.
Latest Videos
Primack's post said, "We're committed to offering our customers more treatment options that best suit their needs."
According to Bloomberg, a monthly prescription of Zepbound via Hims' platform would cost $1,899 — $800 more than Lilly's list price for the drug — although this includes a Hims membership, unlimited provider consultations, and treatment support.
On Stocktwits, Hims' sentiment score jumped from 'neutral' to 'bullish,' while message volume soared by nearly 140%, with the ticker among the top 10 trending symbols.
"Great partnership, and I think we will see more partnerships like this in the near future," wrote one user. "HIMS is not only a health care company, but it's a DATA company."
However, there was a word of caution from a Wall Street analyst.
According to The Fly, BofA reiterated its 'Underperform' rating on Hims & Hers with a $22 price target.
The research firm noted that branded drug sales typically yield pharmacy margins of just 2%-4%, far below Hims & Hers' current 80% gross margin.
BofA also pointed to CVS Health and Walgreens indicating negligible margins on weight loss drugs, reinforcing its view that Hims & Hers' Zepbound sales will remain "immaterial" even in the long term.
Still, several bullish retail watchers on Stocktwits dismissed the thesis, with some alleging that BofA had a short position on Hims' stock based on a recent regulatory filing.
Following the announcement, Eli Lilly clarified on its website that it has no affiliation with Hims & Hers.
It added that any licensed healthcare professional can prescribe Zepbound and highlighted pricing options, including a $25 copay for eligible insured patients and a $349 monthly cost for self-pay customers via LillyDirect.
Hims & Hers stock, which was slipping in Tuesday’s after-hours trading, has gained more than 26% this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.