DTC obesity med market heats up: Eli Lilly taps knownwell, Hims & Hers adds new weight loss meds to platform

Hims & Hers is expanding access to Eli Lilly's branded weight loss drug Zepbound and diabetes drug Mounjaro as well as generics of Novo Nordisk's diabetes drug liraglutide through its weight loss platform. 

In a blog post on Tuesday, the online health and wellness company said it would offer generic liraglutide and branded tirzepatide, the key ingredient in Zepbound and Mounjaro, in addition to oral medication kits, compounded semaglutide and branded semaglutide. The company said earlier this year it plans to sell a generic version of Novo Nordisk's diabetes drug, liraglutide. 

Shares of Hims & Hers closed 5% higher Tuesday following the news.

Drugmaker Eli Lilly quickly issued a statement that is has no affiliation with Hims & Hers. "Zepbound (tirzepatide) can be prescribed by any licensed healthcare professional. People who are commercially insured with coverage for Zepbound may be eligible to pay as low as $25. For those who self-pay, Zepbound is available starting at $349 per month on LillyDirect," the company said, referring to its own direct-to-consumer service.

The statement reflects the rift between the two companies as Hims & Hers has been selling compounded versions of GLP-1 medications as alternatives to pricey branded GLP-1s such as Ozempic and Wegovy.

Hims & Hers is a multispecialty telehealth platform that connects consumers to medical care for numerous conditions related to mental health, sexual health, dermatology and primary care. The company expanded into weight loss in late 2023 with oral medication kits and added compounded GLP-1 medications to its offerings last May. Hims & Hers also offers subscriptions for Wegovy and Ozempic, starting around $1,800 a month, while compounded GLP-1 medications are priced at $165 a month for a subscription.

During the Super Bowl in February ran a controversial ad that featured a montage of junk food, abdominal fat, statistics about the health risks of obesity and big pharma's high prices for weight loss drugs. The ad then promotes Hims & Hers' weight loss products, including copycat versions of GLP-1 medications.

Later that month, Eli Lilly ran a TV ad warning against the use of counterfeit or compounded drugs, which aren’t subject to FDA oversight the same way as branded prescription drugs.

Hims & Hers took a hit when the Food and Drug Administration (FDA) announced that semaglutide, the active ingredient in weight loss drugs Ozempic and Wegovy, is no longer in short supply. That spells bad news for manufacturers of compounded semaglutide and the telehealth companies that have built up a market selling cheaper alternatives to branded weight loss drugs. 
 
The U.S. allows compounding pharmacies to manufacture close approximations of branded drugs when the reference drug is in shortage. The FDA's announcement that the shortage was resolved means compounding of semaglutide will no longer be permitted under current regulations.
 
Hims & Hers stock has slumped 40% since the FDA announcement back in February.
 
The company has been evolving its weight loss platform to combat any impacts from restrictions on selling compounded versions of semaglutide. 
 
"The increased level of product availability broadens HIMS' weight loss offerings, which is a positive, although we do note that the Zepbound is being sold at a fairly expensive price point of $1,899 per month," said Leerink Partners analyst Michael Cherny in a research note.
 
Hims & Hers expects its weight loss business to bring in $725 million in revenue in 2025, Chief Financial Officer Yemi Okupe told investors back in February. But that figure excludes commercially available dosages of semaglutide, which the company will no longer offer after the first quarter, executives said.

Hims & Hers said it would pivot to focus on other weight loss products. "We see our steady state weight loss offering being primarily composed of our evolving oral-based solutions, as well as liraglutide later this year," Okupe said.

The company plans to sell a generic version of Novo Nordisk's diabetes drug, liraglutide. Hims & Hers also plans to sell personalized doses of semaglutide "for the subset of consumers for whom it is a clinical necessity," he said.

Eli Lilly expands direct-to-consumer services

The pharma giant continues to expand its direct-to-consumer service, called LillyDirect, through partnerships with digital health companies.

The pharmaceutical company launched its own direct-to-consumer telehealth offering for weight loss in January 2024. In December, the pharma giant unveiled a partnership with direct-to-consumer health and wellness company Ro to offer access to lower-priced, single-dose vials of weight loss drug Zepbound through the LillyDirect self-pay pharmacy channel.

Eli Lilly also works with telehealth companies 9amHealth and Form Health, through its LillyDirect channel, to offer consumers direct access to weight loss and diabetes medications.

This week, obesity startup knownwell announced that it will be listed as a care provider option on LillyDirect to prescribe medications. The startup offers in-person and virtual services as a weight-inclusive primary care and metabolic health company.

“In my two decades as a practicing obesity medicine specialist, I have had a front-row seat to the seismic shift in the perception of GLP-1s,” Angela Fitch, M.D., co-founder and Chief Medical Officer of knownwell said in a statement. “From public opinion to new medical indications, the conversation is evolving rapidly, and new information floods the airwaves daily. One fundamental truth remains: episodic obesity care does not lead to long-lasting results and comprehensive, longitudinal care is essential for both patient safety and better patient outcomes. We operate on this truth and will extend our clinically rigorous approach through this new collaboration.”

Also this week, digital healthcare company Noom announced an agreement with LillyDirect's self-pay pharmacy Gifthealth to offer access to Zepbound (tirzepatide) single-dose vials for Noom’s members with an on-label prescription from their physician. The new product integration will begin rolling out to members in mid-April.

Noom will join telehealth providers LifeMD and Teladoc Health offer access to lower cost, single-vial Zepbound (tirzepatide) to patients through virtual weight loss management programs.

Pharma companies are increasingly focused on growing their DTC platforms. Pfizer launched PfizerForAll last year and Novo Nordisk rolled out a direct-to-patient program, called NovoCare Pharmacy, last month.

Federal lawmakers are scrutinizing Pfizer and Eli Lilly's direct-to-consumer telehealth platforms in search of any indication the services could create conflicts of interest for prescribers, Fierce Pharma Marketing reported. Those lawmakers are now directing similar queries toward several of the platforms’ partners. The legislators sent letters to five telehealth companies that have held contracts with Lilly or Pfizer: 9amHealth, Thirty Madison, Form Health, Populus Health Technologies and UpScriptHealth.