Shares of Hims & Hers Health Inc. (HIMS) plummeted by 5.08% in Friday's trading session, following news of a significant deal between the White House and major pharmaceutical companies to reduce the cost of popular weight-loss drugs. This agreement has raised concerns about potential impacts on telehealth companies like Hims & Hers that offer weight management solutions.

The White House announced a deal with Eli Lilly and Novo Nordisk to substantially cut prices of GLP-1 weight-loss drugs for government programs Medicare and Medicaid, as well as for cash-paying customers. Under the agreement, starter doses of these highly sought-after weight-loss medications will be available for as low as $149 per month through the new TrumpRx direct-to-consumer platform, aiming to expand access to these treatments.

This price reduction initiative poses a significant challenge to telehealth providers like Hims & Hers, which have benefited from the growing demand for weight-loss solutions. The increased accessibility and affordability of these drugs through government programs and direct channels could potentially reduce the attractiveness of telehealth platforms for weight management services, leading to concerns about future growth and profitability for companies in this space.