Latest news with #AminaNiasse
Business Insider
4 days ago
- Business
- Business Insider
Hims & Hers to cut 68 employees, or 4% of workforce, Reuters reports
Hims & Hers will cut 68 employees, or about 4% of its workforce, as it adjusts to the U.S. ban on manufacturing mass copies of Wegovy, Amina Niasse of Reuters reports. These changes are focused on sharpening how we execute, without affecting our priorities or the specialties we're committed to,' a company spokesperson said regarding the layoffs, according to Reuters. Confident Investing Starts Here:
Yahoo
6 days ago
- Business
- Yahoo
Hims to cut 4% of workforce amid ban on weight-loss drug copies
By Amina Niasse NEW YORK (Reuters) -Telehealth platform Hims & Hers said on Friday it will cut 68 employees, or about 4% of its workforce, as it adjusts to a U.S. ban on manufacturing mass copies of the weight-loss drug Wegovy. A U.S. Food and Drug Administration ban on compounded copies of Wegovy, made by Novo Nordisk, took effect on May 22. Hims shares have since dropped 14%. The company said it is seeking new opportunities for growth, including an agreement with Novo to help patients access Wegovy. Hims plans to enter the market for low testosterone and menopause treatments and is looking at offerings to improve longevity and sleep. "These changes are focused on sharpening how we execute, without affecting our priorities or the specialties we're committed to," a company spokesperson said regarding the layoffs. Hims still plans to hire for roles related to its long-term growth plans. Bloomberg News reported the job cuts earlier on Friday. In 2022, the FDA declared a shortage of Wegovy, which has been shown to help patients lose around 15% of their body weight. That declaration allowed compounding pharmacies to produce the drug to meet demand. The FDA in February said Wegovy was no longer in shortage and ended the exception that allowed sale of mass compounded copies of the patented medication. Hims began offering copies of Wegovy in 2024, often at far lower prices than the brand-name version. That boosted subscriptions to the Hims telehealth platform, with revenue up 111% on a yearly basis during the first quarter of 2025. Wegovy copies and similar GLP-1 weight-loss drugs accounted for $200 million of the company's $1.5 billion revenue in 2024. Hims and its rivals have pivoted to what they say are customized copies of Wegovy that should not be subject to the FDA decision, featuring smaller doses or allowing for a more individualized plan for increasing dosage than offered by Novo. But analysts said that personalization strategy may not be enough to stave off new legal challenges from Novo. "It remains to be seen whether HIMS method of personalization (titration and dosage) is enough to meet the compounding clinical exemption need," said Jailendra Singh, a healthcare analyst at Truist. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Weight-loss company Noom pivots to smaller doses of compounded Wegovy
By Amina Niasse NEW YORK (Reuters) -Online weight-loss company Noom has begun offering smaller doses of compounded versions of Novo Nordisk's Wegovy as the U.S. drugs regulator clamps down on mass production of copies of the in-demand medicine. Noom will offer its version of compounded semaglutide - the active ingredient in Wegovy and diabetes drug Ozempic - as part of a program personalized for patients, which it says will comply with changing U.S. Food and Drug Administration regulations. Demand for the new generation of highly effective but pricey weight-loss drugs has catapulted sales at Noom and rival telehealth sites including Hims & Hers, WeightWatchers and Ro over the past two years. Taking small doses of the weight-loss drugs, sometimes referred to as micro-dosing, has become popular due to the high cost and side effects of the medicines. For hundreds of dollars less than the name brand drugs, patients could access doctors and pharmacy-made versions based on semaglutide or tirzepatide, the main ingredient in Eli Lilly's rival Zepbound and Mounjaro, due to a regulatory exception allowing them during drug shortages. However, the FDA declared the shortages over and its sunset deadline for compounded versions of Wegovy is May 22. Noom offers its compounded semaglutide at a starting price of $149 for the first month. A 2.5 milligram vial of Wegovy or Zepbound costs $349, according to Novo and Lilly websites. Analysts have said the telehealth companies must pivot to working with branded drugs in order to survive after WeightWatchers filed for bankruptcy. Jeffrey Egler, Noom's chief medical officer, said providers would determine if patients need a smaller dose because of concerns about gastrointestinal side effects, or to boost adherence or help keep lost weight off, for example. Noom CEO Geoff Cook said the move would not conflict with regulations. 'There is a personalized, and there has always been a personalized, exception,' Cook said. Novo Nordisk said it is illegal to make or sell semaglutide copies in the U.S. with only rare exceptions. "As the FDA has warned, compounders cannot evade federal compounding laws by selling knockoff semaglutide drugs with manipulated, unnecessary, and pretextual changes to doses and ingredients," a Novo Nordisk spokesperson said in a statement. DOSING Noom's documents show that a personalized approach could start with half the typical starter 0.25-milligram dose of Wegovy and gradually increase to about half the FDA-approved maximum dose of 2.4 mg over 20 weeks. Noom said the move is not meant to capitalize on the microdosing trend, saying patients could increase their dose to the target, just more slowly. Noom said it will continue selling branded Novo Nordisk drugs as well as Lilly's Zepbound. Clinical trials of Wegovy and Zepbound have shown the drugs can lead to reductions of 15% to 20% of a person's body weight. A recent study suggests that half the usual dose of semaglutide may be as effective a weight-loss tool as current dosing. While compounders can create copies for individuals of doses not available in branded drugs, ongoing FDA reviews of whether tirzepatide and semaglutide fall into a category of drugs too complex to qualify for any compounding could put an end to the practice, said Rosalie Hoyle, a research scientist at Avalere. 'As it stands today, compounders still can technically make a personalized dose of semaglutide and tirzepatide,' she said.
Yahoo
20-05-2025
- Business
- Yahoo
Weight-loss company Noom pivots to smaller doses of compounded Wegovy
By Amina Niasse NEW YORK (Reuters) -Online weight-loss company Noom has begun offering smaller doses of compounded versions of Novo Nordisk's Wegovy as the U.S. drugs regulator clamps down on mass production of copies of the in-demand medicine. Noom will offer its version of compounded semaglutide - the active ingredient in Wegovy and diabetes drug Ozempic - as part of a program personalized for patients, which it says will comply with changing U.S. Food and Drug Administration regulations. Demand for the new generation of highly effective but pricey weight-loss drugs has catapulted sales at Noom and rival telehealth sites including Hims & Hers, WeightWatchers and Ro over the past two years. Taking small doses of the weight-loss drugs, sometimes referred to as micro-dosing, has become popular due to the high cost and side effects of the medicines. For hundreds of dollars less than the name brand drugs, patients could access doctors and pharmacy-made versions based on semaglutide or tirzepatide, the main ingredient in Eli Lilly's rival Zepbound and Mounjaro, due to a regulatory exception allowing them during drug shortages. However, the FDA declared the shortages over and its sunset deadline for compounded versions of Wegovy is May 22. Noom offers its compounded semaglutide at a starting price of $149 for the first month. A 2.5 milligram vial of Wegovy or Zepbound costs $349, according to Novo and Lilly websites. Analysts have said the telehealth companies must pivot to working with branded drugs in order to survive after WeightWatchers filed for bankruptcy. Jeffrey Egler, Noom's chief medical officer, said providers would determine if patients need a smaller dose because of concerns about gastrointestinal side effects, or to boost adherence or help keep lost weight off, for example. Noom CEO Geoff Cook said the move would not conflict with regulations. 'There is a personalized, and there has always been a personalized, exception,' Cook said. Novo Nordisk said it is illegal to make or sell semaglutide copies in the U.S. with only rare exceptions. "As the FDA has warned, compounders cannot evade federal compounding laws by selling knockoff semaglutide drugs with manipulated, unnecessary, and pretextual changes to doses and ingredients," a Novo Nordisk spokesperson said in a statement. DOSING Noom's documents show that a personalized approach could start with half the typical starter 0.25-milligram dose of Wegovy and gradually increase to about half the FDA-approved maximum dose of 2.4 mg over 20 weeks. Noom said the move is not meant to capitalize on the microdosing trend, saying patients could increase their dose to the target, just more slowly. Noom said it will continue selling branded Novo Nordisk drugs as well as Lilly's Zepbound. Clinical trials of Wegovy and Zepbound have shown the drugs can lead to reductions of 15% to 20% of a person's body weight. A recent study suggests that half the usual dose of semaglutide may be as effective a weight-loss tool as current dosing. While compounders can create copies for individuals of doses not available in branded drugs, ongoing FDA reviews of whether tirzepatide and semaglutide fall into a category of drugs too complex to qualify for any compounding could put an end to the practice, said Rosalie Hoyle, a research scientist at Avalere. 'As it stands today, compounders still can technically make a personalized dose of semaglutide and tirzepatide,' she said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
UnitedHealth investors wary and looking for Medicare strategic change
By Amina Niasse NEW YORK (Reuters) -UnitedHealth Group investors, stunned by missteps at the once predictable healthcare giant, are warily expecting strategic changes in its Medicare Advantage health insurance business over the next year. On Wednesday, the Wall Street Journal reported that UnitedHealth was the subject of a criminal probe at the Justice Department, just one day after the company withdrew its financial outlook and said Group CEO Andrew Witty was leaving. The blows are eroding the allure the healthcare behemoth once held for investors. UnitedHealth shares fell 14% in afternoon trading on Thursday to $274.35, near a five-year low. Shares had already plunged 18% on Tuesday, even as the company tried to assuage Wall Street concerns in a conference call. They are down 46% this year. "Given that the investor call earlier this week was so brief and had a lack of detail, investors are on the lookout for another shoe to drop," said James Harlow, senior vice president at Novare Capital Management. The firm owns shares of UnitedHealth. The DOJ criminal probe concerns the company's billing practices in its Medicare Advantage unit for older adults and people with disabilities, the Journal reported. UnitedHealth has said in regulatory filings that investigations, audits and reviews by a dozen different government agencies are underway. UnitedHealth said in a Wednesday statement that it had not been notified of a criminal probe. "We stand by the integrity of our Medicare Advantage program," the company added. Investors said they expect the company to turn around its profit outlook in 2026, at the earliest. Exiting less profitable markets where it sells Medicare Advantage plans for people aged 65 and older and making health insurance plan design changes to offer access to lower-cost healthcare providers and a focus on cheaper generic drugs, rather than pricey branded ones, could be under consideration at UnitedHealth, said Jeff Jonas, a portfolio manager at Gabelli Funds. Even after fixing plan issues, investors will likely need to price in a legal settlement that could cost the company over $1 billion, said Jonas. And traditional cost-management measures that insurers have historically deployed, such as the use of prior authorizations and claim denials, have come under public and legislative criticism since the killing of UnitedHealthcare executive Brian Thompson last December, Jonas added. In a first-quarter earnings call, the company noted that specialty care visits had generated higher costs after patients saw providers who are part of its Optum health services unit. "Optum and OptumHealth are UnitedHealth's supposed antidote to the low-margin business," said Kevin Gade, chief operating officer at Bahl & Gaynor. "The fact that OptumHealth is at the epicenter only magnifies this stock move." Optum is too tightly integrated with the company's Medicare Advantage plans for investors to expect a breakup of the insurance business and other healthcare operations, Jonas said. Harlow at Novare Capital Management said that without strategic details on a turnaround for its insurance business, a breakup would not assuage low morale from investors. For investors planning to ride out the challenges, last year's difficulties in CVS Health's Aetna insurance business come to mind. The company in 2024 missed earnings expectations for the first three quarters after facing rising healthcare costs and difficulty restructuring. "There's no doubt UnitedHealth got behind the pricing curve relative to peers for 2025," said Gade, who added the company still has value due to its average $20 billion in free cash after covering expenses. "I don't think it's as existential as the stock price may appear."
