Hims & Hers to Undercut GLP-1 Market with $49 Semaglutide Pill Launch
Hims & Hers Health will begin selling compounded semaglutide pills at $49 for the first month and $99 thereafter, undercutting Novo Nordisk’s $149 monthly rate and Lilly’s planned $149–$399 orforglipron pricing. The move targets the booming oral GLP-1 market and prompted an 8% drop in Lilly shares.
1. Hims Launches Compounded Oral Semaglutide
On Feb. 5, Hims & Hers Health announced it will start offering compounded semaglutide pills for weight loss at $49 for the first month, rising to $99 monthly thereafter. This direct-to-consumer product aims to attract patients wary of injections and capitalize on growing demand for oral GLP-1 therapies.
2. Aggressive Pricing Strategy
Hims’ pricing is $100 below Novo Nordisk’s oral semaglutide rate and significantly undercuts Lilly’s planned $149–$399 orforglipron pricing tiers. The lower cost could pressure branded manufacturers and appeal to cost-sensitive patients and providers.
3. Market Impact and Lilly Reaction
News of Hims’ copycat offering caused Eli Lilly shares to fall 7.8% as investors feared a hit to orforglipron’s blockbuster potential. Despite compounded GLP-1 prescriptions totaling around 1 million versus 100 million for branded drugs, the move highlights emerging competition in the oral obesity and diabetes market.
4. Outlook and Risks
While compounded pills represent a small slice of the overall GLP-1 market, Hims could disrupt pricing norms. However, regulatory scrutiny of compounded drugs and patent challenges pose risks that could limit scale and long-term profitability.