By Elsa Ohlen

Telehealth company Hims & Hers said late Monday in an earnings update that it plans to launch a generic version of Novo Nordisk's diabetes drug as soon as 2025.

It reported strong quarterly earnings. The stock rose 8.2% to $22.47 in the premarket Tuesday, adding to a 133% gain so far this year. Novo shares fell 0.7% and Lilly stock slipped 0.2%.

CEO Andrew Dudum said plans to bring liraglutide, the first generic GLP-1 in the market are set for 2025, in an earnings call Monday after the bell. GLP-1's are a type of weight loss drug.

Liraglutide is Novo's type 2 diabetes drug, sold under the name Victoza, that helps control appetite and blood sugar levels.

Booming demand for weight-loss drugs including Novo's Wegovy and Eli Lilly's Zepbound led to shortages that enabled drug compounders like Hims & Hers to produce generic versions despite patent protection.

Novo's drugs are still officially on the U.S. Food and Drug Administration's drug shortage list but all doses of Wegovy and Ozempic are now listed as available.

The FDA said on Oct. 2 that Lilly's blockbuster drugs Zepbound and Mounjaro are no longer in shortage. The FDA has since said it "re-evaluate" the decision and it isn't clear what the future may hold for companies profiting from the drug shortage.

Hims & Hers posted third-quarter revenue of $401.6 million, up 77% from the same period last year. Earnings per share came in at 32 cents, well above estimates of 11 cents per share, according to analysts polled by FactSet.

It also raised its full year 2024 revenue guidance to a range of between $1.460 billion and $1.465 billion. It raised its outlook for adjusted earnings before interest, tax, depreciation and amortization (Ebitda) to a range between $173 million and $178 million.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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November 05, 2024 08:30 ET (13:30 GMT)

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