Hims & Hers slips after Lilly says discount Zepbound single-dose vials available

Shares of Hims & Hers (HIMS) are down about 5% to $15.29 in early trading after Eli Lilly (LLY) announced Zepbound 2.5 mg and 5 mg single-dose vials are available for self-pay for patients with an on-label prescription, significantly expanding the supply of Zepbound in response to high demand. “The single-dose vials are priced at a 50% or greater discount compared to the list price of all other incretin, or GLP-1, medicines for obesity,” Lilly stated earlier. In December of 2023, Hims & Hers Health unveiled “Weight Loss by Hims & Hers,” which it called “a comprehensive and customizable clinical approach specifically designed to help people achieve their individual weight-loss goals.” While recently initiating coverage of Hims & Hers with a Buy rating and $24 price target, Needham noted that while the stock has seen an increased level of volatility in association with its launch into the compounded GLP-1 space, the firm believes “this will have a more positive than negative impact” on the company’s fundamental profile. Hims is “not just a GLP-1 story” as even without contribution from GLP-1, it is growing 40%-plus at over $1B in revenue and boasts multiple levers for growth and margin expansion, Needham added.