Both companies revolve around subscription-based services. Hims & Hers is witnessing high-double-digit growth, and profits are soaring.
Eli Lilly is discounting Zepbound, potentially undercutting a growing business for Hims & Hers. Pharma companies are starting to sell more drugs direct-to-consumer, threatening traditional pharmacies.
Hims & Hers has carved a strong niche in the men's healthcare segment while expanding into other areas. The weight-loss category is a huge opportunity for the company.
Eli Lilly's Zepbound got a 50% price cut that could take some of Hims & Hers growth potential. Lower-cost drugs could be good news for Hims & Hers long term.
The new option is priced at a 50% or more discount compared to other weight-loss drugs.
After a strong start to the year, the stock is down 30% since June.
Hims & Hers Health, Inc. reported booming sales in Q2, but the stock fell due to possible confusion on compounded GLP-1 drug sales. The online health and wellness platform dramatically hiked Q3 sales targets to over $375 million. The stock would trade at $41 based on trading at just 5x EV/S targets.
Hims & Hers stock has dropped ~30% from recent peaks despite raising its outlook for FY24. Investors are concerned over projections for the company's weight loss compound drugs, especially if the FDA-approved Wegovy and Ozempic see better supply. Still, the company's weight loss revenue is only contributing a small fraction of its outstanding growth rates today, built across a wide range of specialties.
Subscriber growth reaccelerated, focus on personalized products, over 40% subscribers use personalized solutions. Stock-based compensation concern, $100M buyback program, increased marketing spend, positive outlook for Hims' future. GLP-1 offering still in a gray area, path forward looks difficult but possible.
Hims & Hers Health (HIMS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Hims & Hers stock is trading based on speculation about its success with weight loss drugs. But that's a very small part of its business.
Novo Nordisk and Eli Lilly are currently the major players in the weight loss market. Hims & Hers Health is looking to disrupt the space by offering a lower-cost alternative.