As part of the agreement, Hims said it won't compound GLP-1 medications like Zepbound in the future
Patients who use Hims & Hers Health's telehealth platform can now directly order Eli Lilly's GLP-1 medications on the site.
Hims & Hers Health announced a new arrangement with Eli Lilly that allows patients to purchase the drugmaker's GLP-1 medications directly through its platform.
In the past, patients who participated in Hims' weight-loss program and wanted to take Zepbound, Lilly's (LLY) popular GLP-1 shot, or Foundayo, its new GLP-1 pill, were directed to Lilly's telehealth platform to purchase the medication.
"That process introduced barriers to the seamless care journey enabled by the Hims & Hers platform, such as making it more challenging for providers to catch risk signals and help manage side effects early," Hims spokesperson Jillian Kight told MarketWatch. "It also meant customers were required to manage two different platforms and two different monthly payments."
Hims' stock (HIMS) rallied 4.7% on Friday morning after the deal with the world's largest drugmaker was announced.
The company, which is considered one of the largest direct-to-consumer telehealth platforms by volume, had inked a deal like this earlier this year for Novo Nordisk's (DK:NOVO.B) (NVO) GLP-1 franchise. Those companies came to an agreement after a legal spat over Hims' compounding of Novo's GLP-1 pill.
As part of the deal with Lilly, Hims has agreed not to compound Lilly's GLP-1 medications in the future. Hims said it has never provided compounded versions of Lilly's GLP-1 drugs.
Hims & Hers offers a weight-loss membership program that costs $149 per month, plus the cost of medication, and provides users access to direct messaging with providers, discounts at companies like the meal-kit service HelloFresh $(HELFY)$, and a smart scale to measure weight loss at home.
Costs for patients who use the Hims platform start at $299 per month for Zepbound and $149 for Foundayo.
Hims' stock is down 25% so far this year.
-Jaimy Lee