Updated: Eli Lilly will sell weight-loss drugs directly on the Hims & Hers website

Added the word "shares" in paragraph 2

Michael Erman

Reuters, November 6 - Eli Lilly and Company (LLY.N) said on Friday that it has reached an agreement allowing telemedicine firm Hims & Hers Health (HIMS.N) to directly sell its weight-loss drugs Zepbound and Foundayo on the platform.

Hims & Hers shares rose more than 7% in premarket trading.

Previously, patients on the Hims & Hers platform who wanted to purchase Eli Lilly drugs had to leave the site and go to Lilly’s self-pay platform, LillyDirect.

This move puts Lilly on the same footing as Danish rival Novo Nordisk NOVOb.CO, which has been selling its Wegovy and Ozempic on Hims & Hers (link) since March. Novo Nordisk had previously sued the telemedicine company for offering compounded versions of their drugs.

Although Novo Nordisk sells millions more weight-loss pills in the U.S. than Lilly, Lilly holds a leading position in the weight-loss drug market thanks to its highly effective injectable Zepbound. Lilly launched its oral drug Foundayo in April, about three months after Novo Nordisk's Wegovy pills came to market.

“Currently, user convenience and accessibility to Eli Lilly drugs on the Hims & Hers platform are not entirely smooth,” said Ilya Yuffa, President of Lilly USA.

He noted that any point of inconvenience for consumers increases the likelihood they will abandon the purchase.

Yuffa stated that under the agreement, Hims & Hers has agreed not to sell compounded or generic versions of any Lilly weight-loss drugs.

The self-pay price for Lilly's anti-obesity drug Foundayo starts at $149 per month, and for the GLP-1 injectable Zepbound, it starts at $299 per month, which matches the LillyDirect platform pricing.

For Novo Nordisk’s drugs on the platform, Wegovy oral tablets start at $149 per month, while Wegovy injection pens start at $199 per month.

According to Lilly, about 40% to 45% of Zepbound sales come from self-pay channels.

Analysts say Hims & Hers could benefit next year as employers cut insurance coverage for weight-loss drugs to manage costs (link).

Last week, driven by surging demand for injectable weight-loss drugs, Lilly raised its full-year revenue forecast by $5 billion (link). In the vast and growing obesity drug market, Lilly’s leading position has pushed its market capitalization to $120 billion.

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