Hims pivots to branded Tirzepatide, generic Liraglutide

Most people have been having the unfortunate experience of a stop of service from compounding pharmacies that used to serve them. While of course people are suffering the most, popular telehealth provider and compounded GLP1 market participant Hims's stock has tumbled following the news:

While Hims leaned heavily into compounded GLP1s (Semaglutide and Tirzepatide), the recent change in shortage status meant that their revenues could not continue.

This left a question of what Hims would do next – and it looks like there is clarity on that now:

It's still unclear how Hims plans to obtain Tirzepatide (Zepbound) – where as in the past they could rely on compounding, that option is now gone.

Eli Lilly denies any affiliation with Hims

Somewhat rare in the business landscape, Eli Lilly soon put out a notice that it was unrelated to Hims & Hers:

Eli Lilly making it so clear there is no connection between "branded Tirzepatide" and Eli Lilly as an official provider (and also making it clear that LilyDirect is still their suggested way to get Tirzepatide), is quite the strong business move, bordering on aggressive.

Clearly there is no love lost between Eli Lilly and Hims & Hers – a official distribution/partnership deal between the two is probably very unlikely.

This means that it's also growingly unlikely that Hims & Hers will be able to deliver any appreciable price reduction for it's own users – at best they will be able to manage Tirzepatide via LillyDirect (which may also be questionable depending on the stipulations of LillyDirect), or provide cheaper generic Liraglutide.

Liraglutide may be cheaper, but it's also less effective than even Semaglutide (and certainly Tirzepatide):

Semaglutide & Liraglutide continue to be effective

Semaglutide and Liraglutide continue to be researched and studied and produce positive results for weight loss and medical outcomes.

GLP1 GuideGLP1.Guide Staff

A possible deal with Novo Nordisk?

There are only a couple companies that are set up to deliver cutting-edge GLP1s to consumers at large scale – and the other company capable of doing this is Novo Nordisk.

It remains to be seen if Hims can strike a deal with Novo Nordisk to enable access to semaglutide on their platform, but it looks like they have gone for the cheaper option (Liraglutide) which could be offputting to Novo Nordisk.

One difference between Lilly and Novo Nordisk in this area is that Novo Nordisk stands in a much more tenuous position with regards to tariffs – as the Trump administration gears up to set (and possibly increase) tariffs on other nations, Novo Nordisk is clearly more at risk than Eli Lilly, though both have companies have some US manufacturing hubs.

It's also unclear if Novo Nordisk will take a similar stance to Eli Lilly (disavowing any affiliation) or be a bit more cooperative (if possible) in increasing access to it's banner drug.

Is Tirzepatide affordable at $349/month via LillyDirect?

Without being covered by insurance, it's unclear whether the pricing of LillyDirect is enough to be affordable for the average American, and the answer to that question is likely no.

That said, $349 is still a large drop from the oft-cited $1000/month price tag, and Tirzepatide is currently the most effective GLP1 (dual agonist) with FDA approval.

Even with prices coming down for Tirzepatide, it's unclear how much further they will fall. Remember, Novo Nordisk also reduced it's prices recently on direct-to-consumer GLP1:

Novo Nordisk offers cheaper Wegovy

Novo Nordisk makes available cheaper Wegovy, via it’s savings plan, purchasable at local pharmacies.

GLP1 GuideGLP1.Guide Staff

While this isn't quite the competition we'd like to see, improvements in pricing for GLP1s is a welcome change, and at the very least the two largest players seem to be reacting and competing.

Updates: Hims plans to sell Wegovy, Tirzepatide prices seem to be exorbitant

Corrections on the Reuters article that broke this story reveal some interesting developments:

• "branded Wegovy" will also be sold by Hims
• Leerink Partner's analyst has confirmed a supposed price

The second point there is the most alarming:

"The increased level of product availability broadens HIMS' weight loss offerings, which is a positive, although we do note that the Zepbound is being sold at a fairly expensive price point of $1,899 per month," said Leerink Partners analyst Michael Cherny.

Attempting to sell Zepbound at $1,899 a month when it is available via LillyDirect at less than $400/month is quite the bold move, and is unlikely to make Hims any customers in the marketplace.

This story is moving quickly, but clearly, there is a bit more work to be done on the Hims side putting together a compelling offering.