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Hims & Hers
Digital pharmacy startup Hims & Hers Health is introducing access to compounded GLP-1 weight loss injections, the company announced Monday.
Shares of the company jumped 20% in early trading.
The company, which offers a range of direct-to-consumer treatments for conditions like erectile dysfunction and hair loss, launched a weight loss program in December. But GLP-1 medications — such as Ozempic and Wegovy, which have skyrocketed in popularity — were not previously offered as part of that program.
Customers can access the compounded GLP-1 medications via a prescription from a licensed health-care provider on the Hims & Hers platform. Hims & Hers said it plans to make branded GLP-1 medications available to its customers once consistent supply is available.
The company’s oral medication kits start at $79 a month, and its compounded GLP-1 injections will start at $199 a month.
Even before it added compounded GLP-1s to its portfolio, Hims & Hers said in its fourth-quarter earnings report that it expects its weight loss program to bring in more than $100 million in revenue by the end of 2025. The company plans to offer updated guidance in its next earnings report.
The GLP-1 market, dominated so far by pharmaceutical giant Novo Nordisk, has faced supply constraints in recent months as the drugs get expanded approval from health regulators and increased health coverage.
GLP-1s work by mimicking a hormone produced in the gut to tamp down a person’s appetite and regulate their blood sugar. When those medications are in shortage, certain manufacturers can prepare a compounded version of them as long as they meet certain requirements from the U.S. Food and Drug Administration.
The FDA does not review the safety and efficacy of compounded products, which are custom-made alternatives to brand drugs designed to meet a specific patient’s needs.
In a January release, the FDA said patients should not use a compounded GLP-1 drug if an approved drug like Wegovy is available to them.
Hims & Hers CEO Andrew Dudum told CNBC the company is “confident” that customers will be able to access a consistent supply of the compounded medications.
Dudum said Hims & Hers has spent the last year learning about the GLP-1 supply chain and has partnered with one of the largest generic manufacturers in the country that has FDA oversight.
“We have a certain degree of exclusivity with that facility that will guarantee our consumers consistent volume and supply,” he said in an interview.