Hims & Hers Health struck a deal with Eli Lilly that lets patients buy Lilly's GLP-1 drugs directly on the Hims platform. Hims agreed not to compound Lilly's GLP-1 medications, and its stock rose on the news.
Hims & Hers Health shares rallied 4.7% on Friday morning after the company announced an arrangement with Eli Lilly, the world's largest drugmaker. The deal allows patients to purchase Lilly's GLP-1 medications directly through the Hims platform.
Before this, patients in the Hims weight-loss program who wanted Zepbound or Foundayo, Lilly's new GLP-1 pill, were directed to Lilly's telehealth platform to buy the medication. According to Hims spokesperson Jillian Kight, that process "introduced barriers to the seamless care journey". She added that customers had to manage two platforms and two monthly payments.
Hims agrees not to compound Lilly's drugs
As part of the agreement, Hims will not compound Lilly's GLP-1 medications in the future. Hims said it has never provided compounded versions of those drugs.
Hims had inked a similar deal earlier this year for Novo Nordisk's GLP-1 franchise, after a legal spat over Hims' compounding of Novo's GLP-1 pill.
Pricing and the stock's year
Hims' weight-loss membership costs $149 per month, plus the cost of medication. Patients on the platform pay from $299 per month for Zepbound and $149 for Foundayo.
Despite Friday's gain, Hims' stock is down 25% so far this year.
Source: MarketWatch
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