Latest news with #HimsAndHers
Yahoo
17 hours ago
- Health
- Yahoo
The cheap fat jabs sending big pharma into a frenzy
For many Americans who tuned in to watch the Super Bowl earlier this year, it was a surprise to find themselves fat-shamed during the ad break. 'Obesity is America's deadliest epidemic,' a voiceover said, as images of wobbling bellies, greasy burgers and giant apple pies flashed across TV screens. The Super Bowl's 127m-strong audience, who were tucking into an estimated 1.5bn chicken wings during the event, were warned that 'obesity leads to half a million deaths each year'. But Hims and Hers, the US online medicines company behind the ad, said people should not blame themselves. Instead, its advert claimed that 'the system' was keeping them 'sick and stuck', adding that 'there are medications that work, but they're priced for profits, not patients'. To the relief of viewers, Hims and Hers offered a 'life-changing' solution. Rather than paying hundreds of dollars each month for well-known, branded weight-loss jabs such as Wegovy, households could instead try Hims and Hers' cheaper, replica versions. 'This is the future of healthcare,' it argued. 'Join us in the fight for a healthier America.' However, for the likes of Danish obesity drug maker Novo Nordisk and US pharma rival Eli Lilly, which have claimed the rise of copycat jabs poses potential health risks, such claims have become a serious headache. Over the past few decades, both businesses have poured billions of dollars into obesity drug research – recently yielding blockbuster drugs Wegovy and Mounjaro. The rapid uptake of such drugs has prompted a surge in revenues for big pharma. But bosses are now increasingly worried that demand among American patients has been dented by a cluster of smaller, copycat companies. According to industry estimates from November, around a quarter of the 8m Americans on weight-loss drugs were taking knock-off replica versions. These medicines, known as 'compound' drugs, were priced at around $200 ($148) a month, compared to over $1,300 for some branded versions. Barclays analyst Emily Field says the boom in copycat weight-loss drugs has been a 'unique phenomenon' in the US, sparking an inevitable surge in legal claims that has drawn the attention of regulators. So-called compound drugs are essentially custom-made medicines created by pharmacies using the same active ingredients of patented drugs. Historically, compounding pharmacies create custom versions of medicines if they need to personalise them for patients. For example, if someone is unable to take a standard oral medicine in pill form, or is allergic to an ingredient in an existing medicine. Compounding pharmacies are also typically blocked from mass-producing their drugs. For weight-loss drugs, though, it has been a different story. After the US Food and Drug Administration (FDA) put semaglutide – marketed as the blockbuster obesity drug Wegovy – and tirzepatide – the same for Eli Lilly's Mounjaro – on the shortage list in 2022, compounders were allowed to ramp up production. 'It was almost like these companies found a loophole where they were allowed to do this on a mass scale,' says Field. The impact has been significant. At the start of this year, Novo Nordisk estimated that the copycat drugs accounted for around a third of the entire weight-loss market. That is despite warnings from the FDA about the health risks posed by compounded medicines, which do not have to be approved by the regulator. Beth, from Washington, says she was tempted by online ads for the compound medicines, having struggled with her weight since the pandemic. For her, the drugs helped her at a time when it seemed impossible to lose weight or stick to a diet. She dropped 30lbs over a few months of taking a compound weight-loss medicine. Others say they had little choice but to opt for compound versions, given that the branded medicines were too expensive and not covered by their health insurance. However, the situation is rapidly changing. Last month, the FDA banned mass production of copycat weight-loss treatments that use semaglutide, the ingredient in Novo Nordisk's Wegovy. It also removed tirzepatide from its shortage list last October. Novo Nordisk said the law has now made things clearer. 'Moving forward, any compounder that mass produces or sells knock-off drugs is breaking the law and compromising patient safety,' a spokesman said. Eli Lilly says the products 'pose potentially life-threatening health risks', adding: 'Patients shouldn't be exposed to risky, unapproved products when regulator-approved medicines are available.' Online medicines firms, also known as telehealth businesses, are now racing to find a way to continue getting cheaper, personalised replica drugs out to patients. Noom, a rival to Hims and Hers, has suggested it will still be able to sell compounded weight-loss drugs to patients under an exception set aside for 'personalised' medicines. Hims and Hers, meanwhile, has already struck a new deal with Novo to offer its branded obesity drug to patients. The US firm also said this month it was exploring expansion in the UK, after acquiring European rival Zava. Andrew Dudum, the Hims and Hers chief, suggested there could be 'expansive options in obesity that include that type of personalisation, or similar types', telling the Financial Times that it could sell replica obesity medicines in the UK and Europe. David Meinertz, the boss of Zava, agrees that there are opportunities for the business to grow outside of America. 'There's clearly the experience and expertise that Hims and Hers have built up in the US,' he says. 'But then we have things like the regulatory knowledge here in Zava, and this is where we combine our experiences and spearhead this effort.' Still, the situation in the UK is very different to the US. Here, the compounding pharmacy market is much smaller, with pharmacies able to prepare personalised medicines for patients if it is prescribed by a doctor. Elizabeth Philp, the co-founder of compounding pharmacy Roseway Labs, says there could be a role for more personalisation of medicines. 'The NHS will say wasted medication is one of their top issues – people who try medication, put it in their bathroom cupboard and never use it again because it didn't suit them,' she says. 'We can really help with that.' However, drug insiders argue it would be a 'very bad idea' if the UK started to think about bringing in cheaper compound medicines for weight loss. 'The real drugs are getting very cheap at volumes,' says one senior drug leader. 'Supply is not an issue.' It will be a message that Novo and Eli Lilly will seek to drum home as they seek to prevent smaller rivals from selling cheaper weight-loss medicines to patients. Still, the effects of this debate are already being felt by many in the US battling to lose weight. 'I cannot afford the full price at this time,' says Beth. 'I think it's awful that people are losing access to this medication due to finances or compounded meds going away. 'These drugs are literally life-changing.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
19 hours ago
- Health
- Telegraph
The cheap fat jabs sending big pharma into a frenzy
For many Americans who tuned in to watch the Super Bowl earlier this year, it was a surprise to find themselves fat-shamed during the ad break. 'Obesity is America's deadliest epidemic,' a voiceover said, as images of wobbling bellies, greasy burgers and giant apple pies flashed across TV screens. The Super Bowl's 127m-strong audience, who were tucking into an estimated 1.5bn chicken wings during the event, were warned that 'obesity leads to half a million deaths each year'. But Hims and Hers, the US online medicines company behind the ad, said people should not blame themselves. Instead, its advert claimed that 'the system' was keeping them 'sick and stuck', adding that 'there are medications that work, but they're priced for profits, not patients'. To the relief of viewers, Hims and Hers offered a 'life-changing' solution. Rather than paying hundreds of dollars each month for well-known, branded weight-loss jabs such as Wegovy, households could instead try Hims and Hers' cheaper, replica versions. 'This is the future of healthcare,' it argued. 'Join us in the fight for a healthier America.' However, for the likes of Danish obesity drug maker Novo Nordisk and US pharma rival Eli Lilly, which have claimed the rise of copycat jabs poses potential health risks, such claims have become a serious headache. Copycat boom Over the past few decades, both businesses have poured billions of dollars into obesity drug research – recently yielding blockbuster drugs Wegovy and Mounjaro. The rapid uptake of such drugs has prompted a surge in revenues for big pharma. But bosses are now increasingly worried that demand among American patients has been dented by a cluster of smaller, copycat companies.
Yahoo
19 hours ago
- Health
- Yahoo
The cheap fat jabs sending big pharma into a frenzy
For many Americans who tuned in to watch the Super Bowl earlier this year, it was a surprise to find themselves fat-shamed during the ad break. 'Obesity is America's deadliest epidemic,' a voiceover said, as images of wobbling bellies, greasy burgers and giant apple pies flashed across TV screens. The Super Bowl's 127m-strong audience, who were tucking into an estimated 1.5bn chicken wings during the event, were warned that 'obesity leads to half a million deaths each year'. But Hims and Hers, the US online medicines company behind the ad, said people should not blame themselves. Instead, its advert claimed that 'the system' was keeping them 'sick and stuck', adding that 'there are medications that work, but they're priced for profits, not patients'. To the relief of viewers, Hims and Hers offered a 'life-changing' solution. Rather than paying hundreds of dollars each month for well-known, branded weight-loss jabs such as Wegovy, households could instead try Hims and Hers' cheaper, replica versions. 'This is the future of healthcare,' it argued. 'Join us in the fight for a healthier America.' However, for the likes of Danish obesity drug maker Novo Nordisk and US pharma rival Eli Lilly, which have claimed the rise of copycat jabs poses potential health risks, such claims have become a serious headache. Over the past few decades, both businesses have poured billions of dollars into obesity drug research – recently yielding blockbuster drugs Wegovy and Mounjaro. The rapid uptake of such drugs has prompted a surge in revenues for big pharma. But bosses are now increasingly worried that demand among American patients has been dented by a cluster of smaller, copycat companies. According to industry estimates from November, around a quarter of the 8m Americans on weight-loss drugs were taking knock-off replica versions. These medicines, known as 'compound' drugs, were priced at around $200 ($148) a month, compared to over $1,300 for some branded versions. Barclays analyst Emily Field says the boom in copycat weight-loss drugs has been a 'unique phenomenon' in the US, sparking an inevitable surge in legal claims that has drawn the attention of regulators. So-called compound drugs are essentially custom-made medicines created by pharmacies using the same active ingredients of patented drugs. Historically, compounding pharmacies create custom versions of medicines if they need to personalise them for patients. For example, if someone is unable to take a standard oral medicine in pill form, or is allergic to an ingredient in an existing medicine. Compounding pharmacies are also typically blocked from mass-producing their drugs. For weight-loss drugs, though, it has been a different story. After the US Food and Drug Administration (FDA) put semaglutide – marketed as the blockbuster obesity drug Wegovy – and tirzepatide – the same for Eli Lilly's Mounjaro – on the shortage list in 2022, compounders were allowed to ramp up production. 'It was almost like these companies found a loophole where they were allowed to do this on a mass scale,' says Field. The impact has been significant. At the start of this year, Novo Nordisk estimated that the copycat drugs accounted for around a third of the entire weight-loss market. That is despite warnings from the FDA about the health risks posed by compounded medicines, which do not have to be approved by the regulator. Beth, from Washington, says she was tempted by online ads for the compound medicines, having struggled with her weight since the pandemic. For her, the drugs helped her at a time when it seemed impossible to lose weight or stick to a diet. She dropped 30lbs over a few months of taking a compound weight-loss medicine. Others say they had little choice but to opt for compound versions, given that the branded medicines were too expensive and not covered by their health insurance. However, the situation is rapidly changing. Last month, the FDA banned mass production of copycat weight-loss treatments that use semaglutide, the ingredient in Novo Nordisk's Wegovy. It also removed tirzepatide from its shortage list last October. Novo Nordisk said the law has now made things clearer. 'Moving forward, any compounder that mass produces or sells knock-off drugs is breaking the law and compromising patient safety,' a spokesman said. Eli Lilly says the products 'pose potentially life-threatening health risks', adding: 'Patients shouldn't be exposed to risky, unapproved products when regulator-approved medicines are available.' Online medicines firms, also known as telehealth businesses, are now racing to find a way to continue getting cheaper, personalised replica drugs out to patients. Noom, a rival to Hims and Hers, has suggested it will still be able to sell compounded weight-loss drugs to patients under an exception set aside for 'personalised' medicines. Hims and Hers, meanwhile, has already struck a new deal with Novo to offer its branded obesity drug to patients. The US firm also said this month it was exploring expansion in the UK, after acquiring European rival Zava. Andrew Dudum, the Hims and Hers chief, suggested there could be 'expansive options in obesity that include that type of personalisation, or similar types', telling the Financial Times that it could sell replica obesity medicines in the UK and Europe. David Meinertz, the boss of Zava, agrees that there are opportunities for the business to grow outside of America. 'There's clearly the experience and expertise that Hims and Hers have built up in the US,' he says. 'But then we have things like the regulatory knowledge here in Zava, and this is where we combine our experiences and spearhead this effort.' Still, the situation in the UK is very different to the US. Here, the compounding pharmacy market is much smaller, with pharmacies able to prepare personalised medicines for patients if it is prescribed by a doctor. Elizabeth Philp, the co-founder of compounding pharmacy Roseway Labs, says there could be a role for more personalisation of medicines. 'The NHS will say wasted medication is one of their top issues – people who try medication, put it in their bathroom cupboard and never use it again because it didn't suit them,' she says. 'We can really help with that.' However, drug insiders argue it would be a 'very bad idea' if the UK started to think about bringing in cheaper compound medicines for weight loss. 'The real drugs are getting very cheap at volumes,' says one senior drug leader. 'Supply is not an issue.' It will be a message that Novo and Eli Lilly will seek to drum home as they seek to prevent smaller rivals from selling cheaper weight-loss medicines to patients. Still, the effects of this debate are already being felt by many in the US battling to lose weight. 'I cannot afford the full price at this time,' says Beth. 'I think it's awful that people are losing access to this medication due to finances or compounded meds going away. 'These drugs are literally life-changing.'
Yahoo
4 days ago
- Business
- Yahoo
This Monster Growth Stock Is Up 167% in the Past Year and Disrupting the Healthcare Space
Hims & Hers is gaining market share in the telehealth sector and has a long runway to disrupt the healthcare industry. It is acquiring a company in order to enter Europe. The stock is expensive, but it may still be a great investment over the long term. 10 stocks we like better than Hims & Hers Health › Telehealth has gone through a major boom-and-bust cycle. One promising stock emerging from the bust is Hims & Hers (NYSE: HIMS). Through nifty marketing and an insurance-circumventing subscription model that delivers medicine directly to your front door, the company is taking a lot of share in the telehealth market. The stock has traded up 449% since going public, and it is up a staggering 158% in the past year. Disruptive innovation helped bring shareholders of Hims & Hers stock major gains. But does that make the stock a buy today? People in the United States get frustrated dealing with health insurance -- as you may know from personal experience. Hims & Hers aims to slowly disrupt the market with an innovative approach that bypasses insurers. It helps customers easily get generic medications that help deal with sexual health, hair loss, mental health, and other common concerns, by having prescriptions and shipments sent straight to their doors through monthly subscriptions. This model has helped Hims & Hers dominate the telehealth prescription market and reach $1.78 billion in trailing-12-month revenue. It's now trying to further expand its offerings by adding the branded weight loss drug Wegovy to its marketplace through a partnership with Novo Nordisk (NYSE: NVO). Previously, Hims & Hers sold weight loss drugs under an exemption because of supply shortages for the products, but with those shortages now resolved, it has to work with patent holders such as Novo Nordisk. Along with weight loss, it's also aiming to get into testosterone and menopause-related prescriptions. Today, Hims & Hers has 2.4 million active customers. Management believes there are over 100 million people who could utilize one of its products, giving the company a huge runway to grow. A key factor will be the new partnership for marketing Wegovy, which is an expensive subscription at an introductory discount offer of $549 a month. Usage of such drugs is growing like a weed, and could be a new growth avenue for Hims & Hers to pursue. Another huge step for Hims & Hers is international expansion. While countries vary in their approaches to healthcare and insurance, most people want easy-to-use products, affordable prices, and convenient at-home shipping regardless of where they live. Management hopes to supercharge international growth with its proposed buyout of competitor Zava in Europe. Zava serves the western European market with 1.3 million active customers in the United Kingdom, France, Germany, and Ireland. The combined company can utilize Hims & Hers' marketing expertise, increasing scale, and partnerships to bring this sought-after model to Europe. Global disruption of the healthcare space will give Hims & Hers an even larger runway for growth, while also allowing it to invest in new innovations -- including at-home patient testing and its own compounding manufacturing facility. Hims & Hers has grand ambitions to disrupt healthcare with its direct-to-consumer model, and Zava will give it even more scale to keep accelerating growth. It will be exciting to see what the combined company can do over the next decade. You can feel the excitement with Hims & Hers and its explosive revenue growth. Sales grew 111% year over year last quarter, and are expected to hit at least $2.3 billion in 2025. (They were just $100 million in 2020.) The company has a goal of reaching $6.5 billion in sales by 2030, which would make it one of the fastest-growing companies in the world this decade. This fast growth has created some high expectations for Hims & Hers stock. It now has a price-to-earnings ratio (P/E) of 79, which is a high trailing earnings multiple even for a fast-growing company. However, revenue is growing so quickly and with such high margins that the company may grow into this high valuation by the end of the decade. As noted, management has a goal of $6.5 billion in revenue in 2030. With 20% bottom-line profit margins -- easily doable with 77% gross profit margin over the last 12 months -- that would equate to roughly $1.3 billion in annual earnings in 2030. Today, the market cap is $12.3 billion, which would mean a P/E of just around 9.5 by 2030 if the market cap did not change (which is an unlikely scenario, but demonstrates that there is potential for the valuation to drop). Even with some shareholder dilution that raises the number of shares outstanding, the stock would be trading at a P/E of around 10 to 12 at the current share price (which is also likely to change). If you believe this rapid growth will continue over the long term, Hims & Hers stock will grow into its valuation. If you have any doubts about this pace of growth, shares should be considered overvalued at the moment. Before you buy stock in Hims & Hers Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Hims & Hers Health wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. This Monster Growth Stock Is Up 167% in the Past Year and Disrupting the Healthcare Space was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Is Hims & Hers Health a Smart Buy Right Now?
Hims & Hers is the newest darling disrupting the telemedicine space. While shares have jumped 157% over the last year, Wall Street analysts don't seem overly bullish on the stock. Despite impressive results in the business, Hims & Hers has a high short interest -- making a short-squeeze a possibility. 10 stocks we like better than Hims & Hers Health › When it comes to stocks that continue to beat the market, my guess is that your mind goes straight to companies leading the charge in artificial intelligence (AI). Sure, stocks such as Palantir Technologies or CoreWeave remain red-hot in a strong technology sector. But smart investors understand that there are myriad opportunities beyond the usual suspects in tech. One company that has emerged as a new favorite among investors is telemedicine business Hims & Hers Health (NYSE: HIMS). With shares up 157% over the last 12 months as of market close June 4, Hims & Hers Health looks like the next monster growth stock at the intersection of healthcare and technology. Let's assess the state of Hims & Hers' business and then take a look at what Wall Street thinks. Is buying shares of this telemedicine darling a good idea right now? Read on to find out. Hims & Hers is a telemedicine platform that offers patients access to a variety of medications, including for skin care, anxiety, sexual health, and even weight loss. At the core of the company's business model is a subscription platform. At the end of the first quarter, Hims & Hers boasted 2.4 million subscribers, which represented an increase of 38% year over year. This translated into revenue of $586 million for the quarter, up by a jaw-dropping 111% year over year. By keeping its business primarily online, Hims & Hers can benefit in a couple of ways. First, subscription revenue is recurring and therefore carries high gross margins. Second, by keeping its user base using its offerings, the company has the flexibility to spend less on marketing and invest in other areas, such as technology or research and development, in an effort to bolster customer acquisition strategies. Per management's vision, Hims & Hers is doubling down on investments in AI to get a better sense of its customer data. This could be a savvy move, as it may help the company unlock new expansion opportunities. While the ideas above paint a picture of a fast-growing, disruptive new solution in the healthcare space, Wall Street doesn't seem totally sold on Hims & Hers just yet. Over the last month, a number of equity research analysts, including Piper Sandler, Citigroup, Bank of America, and Morgan Stanley, have each maintained ratings of neutral, sell, underperform, or equal-weight. Another way of looking at this is that among some of the largest banks on Wall Street, none seem to have a compelling buy rating on Hims & Hers stock. In addition, the average price estimate among analysts for Hims & Hers stock is roughly $48, implying 12% downside from trading levels as of June 4. Given Wall Street's somewhat bearish sentiment, what could be fueling the stock's seemingly unstoppable rally? I think the company's high short interest could be the cause of the rise in its stock. Per the chart above, roughly 35% of Hims & Hers float is sold short. Investors who short a stock are betting its price will fall. Short interest of 10% or more is considered unusually high. Not only is Hims & Hers' short interest much higher than the usual benchmarks, it's also rising. A high short interest can fuel volatility and even a rise in a stock's price if investors who are shorting a stock need to buy shares in the company to return the borrowed shares and close out their position. This is known as short covering, and it often leads to pronounced increases in a stock for a fleeting period of time, adding to volatility. You might be more familiar with these dynamics as a short squeeze. Despite notable subscriber growth and expanding markets, Hims & Hers stock exhibits too much volatility for my liking, and with that, comes a high degree of uncertainty. At first glance, I can understand what makes Hims & Hers look like an appealing investment. Telemedicine represents a compelling opportunity at the intersection of healthcare and technology, and Hims & Hers has certainly proven that it can consistently acquire users and monetize them. Moreover, the prospects that AI presents in the healthcare space more broadly shouldn't be discounted -- further validating the vision management has for Hims & Hers' long-term growth. Nevertheless, I struggle to look past the meme stock type of behavior exhibited here. While some investors have certainly made money owning this stock, I am suspicious if their profits were sparked by the right reasons. Said differently, I view Hims & Hers as more of a swing trading stock (timing is everything) as opposed to a sound long-term opportunity at this time. For these reasons, I would pass on Hims & Hers at the moment. While I'm intrigued by the company's potential, I think shares have run up considerably and would not be surprised to see some contraction in the share price sooner than later. Before you buy stock in Hims & Hers Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Hims & Hers Health wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends Bank of America, CrowdStrike, Hims & Hers Health, and Palantir Technologies. The Motley Fool has a disclosure policy. Is Hims & Hers Health a Smart Buy Right Now? was originally published by The Motley Fool 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
