Hims & Hers Health, Inc. (HIMS) is making a bold move to address the obesity crisis, particularly among essential workers. The telehealth company has launched the “Service Appreciation Initiative,” offering compounded GLP-1 weight loss medications to eligible individuals for as low as $99 per month. This initiative extends to U.S. military personnel, veterans, teachers, nurses, and first responders.
Hims & Hers Health has gained recognition for providing compounded alternatives to popular GLP-1 weight-loss treatments like Ozempic and Wegovy. The company’s shares have surged over 120% since August 2023, indicating strong market confidence.
The company’s decision to offer discounted medications is driven by the alarmingly high rates of obesity within these essential professions. Studies show that approximately 70% of American adults are overweight or obese, with even higher rates observed among veterans, military personnel, teachers, nurses, police officers, and firefighters. The prevalence of stress, sleep disruption, and occupational hazards contributes significantly to these statistics.
The initiative comes at a time of intense scrutiny surrounding the pricing of popular weight loss drugs. Novo Nordisk A/S (NVO), the maker of Ozempic and Wegovy, has faced criticism for the high cost of its blockbuster drugs. While Novo Nordisk CEO Lars Fruergaard Jørgensen defends the prices, arguing they reduce the economic burden of obesity-related health issues, a recent study revealed that Ozempic could be manufactured for less than $5 per month. This stark contrast with the drug’s current monthly price of $968.52 has sparked further debate. Similarly, Wegovy is priced at $1,349.02 per month.
Senator Bernie Sanders, chair of the Health, Education, Labor and Pensions (HELP) Committee, has been vocal about the disparity in prices between the U.S. and other countries. He has scheduled a hearing for next week to address the issue, with Novo Nordisk CEO Lars Jorgensen expected to appear before the committee.
Hims & Hers’s initiative is gaining traction, with over 12,000 customers reporting significant weight loss – an average of 10.2 pounds with compounded GLP-1 injections and 6.3 pounds with non-GLP-1 oral medications – within four weeks of starting treatment. The company’s commitment to offering affordable and effective weight loss solutions is poised to make a significant impact on the lives of essential workers and the broader fight against obesity.
As of Thursday’s market close, HIMS stock was up 3.49% at $16.88.
