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Key Takeaways
Hims & Hers Health shares fell on Tuesday after Eli Lilly said it would offer a lower-priced version of its popular weight-loss drug Zepbound.
Lilly explained that the new products will be sent directly to consumers.
Hims & Hers recently began offering knockoff versions of Novo Nordisk's Wegovy and Ozempic, and plans to offer a product for Zepbound in the near future.
Shares of Hims & Hers Health (HIMS) fell in intraday trading on Tuesday due to new competition from Eli Lilly (LLY) for a lower-cost weight-loss drug.
Lilly said it will sell the two smallest doses of its popular injectable obesity drug Zepbound in disposable vials that patients can measure themselves.
Lilly says the drugs will be half the price of the prefilled vials currently prescribed, and because they will be sent through the company's Lilly Direct copay channel, they will be available to people who are not covered by the Zepbound savings program or who don't have insurance.
Hims & Hers sells popular medicines at discount prices
That was bad news for Hims & Hers Health, which sells knockoff prescription drugs directly to consumers at lower prices. In May, the company began selling an injectable that contains the same key ingredient as Novo Nordisk's (NVO) popular weight-loss treatments Wegobee and Ozempic. Hims & Hers said in a recent earnings call that it plans to launch an injectable similar to Zepbound in the “near future.”
Hims & Hers Health shares were down 7% to $15.08 as of 11:15 a.m. ET on Tuesday, but are up nearly 70% this year.
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