Direct-to-consumer pharmaceutical startup Hims & Hers Health is shaking up the weight loss medication market by introducing injectable GLP-1 drugs at a fraction of the cost of brand-name competitors. The millennial-skewed telehealth platform announced that it will offer customers a compounded version of semaglutide, the active ingredient in popular weight loss drugs such as Ozempic and Wegovy. Benefitting from a section of the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications in shortage, Hims & Hers aims to provide consumers with affordable access to these in-demand drugs.
The compounded GLP-1 drugs, priced at $199 per month, contain the same active ingredients as the branded versions, Wegovy and Ozempic, which currently face short supply and high costs. Ozempic’s list price nears $1,000, while Wegovy’s price tag reaches $1,349. Hims & Hers’ introduction of affordable GLP-1 medications has had a significant impact, with the company’s shares soaring more than 30% following the announcement. This move reflects a disruptive shift in the weight loss drug market, opening up affordable alternatives for consumers and posing a challenge to established pharmaceutical brands.
