Weight loss drugs helped Hims & Hers Health (NYSE:HIMS) put value on, with the stock soaring some 30% higher in ‘afterhours’ trade on Monday.
The online consumer healthcare brand last night announced it will sell lower-priced GLP-1 weight loss injectables and oral weight loss medication in the United States, through a deal with its pharmacy supplier.
It meanwhile highlighted that its current weight loss product range is ‘tracking to eclipse’ $100 million in revenue by the end of 2025, before these GLP-1 products are rolled out. The company will price the weight loss medication from $79 per month, for the oral kits, whilst the GLP-1 injections will price at $199 per month.
“We’ve leveraged our size and scale to secure access to one of the highest-quality supplies of compounded GLP-1 injections available today," chief executive Andrew Dudum said in a statement.
"We’re passing that access and value along to our customers, who deserve the highest standard of clinical safety and efficacy to meet their goals, and we're doing it in a safe, affordable way that others can’t deliver."
The online consumer healthcare brand (originally just called Hims) made its name selling anti-hair loss and erectile dysfunction products online, and was among the first wave of brands to focus their marketing efforts on podcast advertising.
Following its initial successes, the company expanded in name and market becoming Hims & Hers as it branched out to sell birth control and ‘anti-aging’ product verticals.
Evidently, the brand has found its new niche, as it grows into the weight market.
The weight loss injections will contain the same active ingredients as Ozempic and Wegovy, which are made and sold by Novo Nordisk (NYSE:NVO) (Novo Nordisk (NYSE:NVO)).
Hims floated in New York via a 2021 ‘SPAC’ deal that valued the company at $1.6 billion
In New York, Hims & Hers Health shares jumped $4.40 or 30.2% changing hands at $18.89 – giving the stock a market value of around $4 billion.