Hims & Hers Health declines as Lilly launches single-dose vials of Zepbound By Investing.com

Shares of Hims & Hers Health fell more than 6% Tuesday morning in response to Eli Lilly’s (NYSE:) latest announcement.

Lilly announced that it has launched single-dose vials of its obesity drug, Zebound, at a 50% discount to other incretins, a move that comes amid growing competition in the obesity market.

Lilly’s new offering includes single-dose vials in 2.5 mg and 5 mg strengths priced at $399 and $549 for a four-week supply, respectively. That’s significantly lower than the prices of competing drugs on the list.

The vials will be available through Lilly’s direct-to-patient service, LillyDirect, and are designed to provide a more affordable option for those paying out of pocket, without the need for insurance coverage.

According to Citi analysts, Lilly’s move is a “warning shot” for companies working on GLP-1 compounds, including Hims & Hers Health.

Analysts noted that Lilly’s move is aimed at addressing concerns about “counterfeit, fake, unsafe or untested products” and poses a direct challenge to compounded alternatives on the market.

Hims & Hers currently sells semaglutide, a product that may now face increased competition from this branded option.

Zepbound’s single-dose vials are expected to boost consumer confidence due to its brand assurance, which could impact companies like Hims & Hers.

The implications of Lilly’s new pricing strategy could intensify market pressure on similar players like HIMS.