Hims & Hers Expands Weight Loss Offerings Amid Growing DTC Obesity Med Market

Hims & Hers Health, Inc. is broadening its weight loss platform with the addition of Eli Lilly's Zepbound and Mounjaro, as well as generic liraglutide. This move comes as the direct-to-consumer (DTC) obesity medication market continues to heat up, with pharmaceutical giants like Eli Lilly expanding their own DTC services.

Hims & Hers Diversifies Weight Loss Portfolio

Hims & Hers announced on Tuesday that it would offer branded tirzepatide, the active ingredient in Zepbound and Mounjaro, alongside generic liraglutide through its weight loss platform. This expansion adds to the company's existing offerings, which include oral medication kits, compounded semaglutide, and branded semaglutide.

The company's stock closed 5% higher following the announcement. However, Eli Lilly quickly distanced itself from Hims & Hers, stating it has no affiliation with the telehealth platform and emphasizing that Zepbound is available through its own DTC service, LillyDirect, starting at $349 per month for self-pay patients.

This development highlights the ongoing tension between traditional pharmaceutical companies and telehealth platforms offering compounded versions of popular weight loss medications. Hims & Hers has been selling compounded GLP-1 medications as alternatives to branded drugs like Ozempic and Wegovy, often at significantly lower prices.

Regulatory Challenges and Market Shifts

The weight loss medication landscape is facing significant changes due to recent regulatory developments. In February, the Food and Drug Administration (FDA) announced that semaglutide, the active ingredient in Ozempic and Wegovy, is no longer in short supply. This announcement has major implications for compounding pharmacies and telehealth companies that have been manufacturing and selling cheaper alternatives to branded weight loss drugs.

The FDA's decision means that compounding of semaglutide will no longer be permitted under current regulations, as compounding is only allowed when the reference drug is in shortage. This regulatory shift has led to a 40% decline in Hims & Hers stock since the announcement.

In response to these challenges, Hims & Hers is evolving its weight loss platform. The company expects its weight loss business to generate $725 million in revenue in 2025, according to CFO Yemi Okupe. However, this projection excludes commercially available dosages of semaglutide, which the company will no longer offer after the first quarter.

Pharmaceutical Companies Expand DTC Offerings

As the DTC obesity medication market grows, pharmaceutical companies are increasingly focused on developing their own direct-to-consumer platforms. Eli Lilly has been expanding its LillyDirect service through partnerships with various digital health companies.

Recent partnerships include:

1. Ro: Offering access to lower-priced, single-dose vials of Zepbound through LillyDirect's self-pay pharmacy channel.
2. 9amHealth and Form Health: Providing consumers direct access to weight loss and diabetes medications.
3. knownwell: A weight-inclusive primary care and metabolic health company listed as a care provider option on LillyDirect.
4. Noom: Integrating access to Zepbound single-dose vials for members with on-label prescriptions.

Other pharmaceutical companies are also entering the DTC space. Pfizer launched PfizerForAll last year, while Novo Nordisk recently introduced NovoCare Pharmacy, its direct-to-patient program.

As the DTC obesity medication market continues to evolve, both telehealth platforms and pharmaceutical companies are adapting their strategies to capture market share and provide accessible weight loss solutions to consumers. However, this rapid expansion has attracted scrutiny from federal lawmakers, who are investigating potential conflicts of interest for prescribers on these platforms.