Hims & Hers defends compounded GLP-1s as shortages wane

Direct-to-consumer telehealth company Hims & Hers is defending its sale of compounded glucagon-like peptide agonists, or GLP-1s, even as shortages of the name brand weight loss medications are waning.

Compounded GLP-1s are essentially copies of popular weight loss medications made by manufacturers such as Novo Nordisk and Eli Lilly. Hims & Hers CEO Andrew Dudum said during the company's third quarter earnings call that compounded GLP-1s offered patients access to medications they are unable to get elsewhere.

Related: Telehealth companies are split on compounded GLP-1s

“The data we are seeing on our platform suggests widespread difficulty accessing name brand GLP-1 solutions and a resolution of the GLP-1 shortage would not be possible without the potential disruption of care to hundreds of thousands of Americans,” Dudum said. “In the last two months, a total of over 80,000 reports have come through our platform from consumers that have been unable to obtain name brand GLP-1 treatments, and we’re seeing the number of consumers voicing their frustration increase not decrease in recent weeks.”

Branded GLP-1 drugs such as Ozempic and Wegovy are becoming more widely available after over two years on the Food and Drug Administration's shortage list. The FDA authorizes compounding of certain drugs during shortages. Hims & Hers as well as other telehealth weight loss companies said at HLTH that compounded GLP-1 drugs aren't going away any time soon. 

Hims & Hers, which also offers medications and treatments for hair loss and mental health, reported a strong third-quarter with a profit of $75.6 million, or 32 cents per share, compared with a net loss of $7.6 million, or 4 cents per share, in 2023. The company said its net income this quarter included a $60.8 million tax benefit related to the release of a tax valuation allowance.

Hims & Hers did not provide subscriber projections for its weight management segment, which started selling compounded GLP-1 medications in May. Hims & Hers Chief Financial Officer Yemi Okupe said during the call the majority of the company's subscriber growth came from segments outside of the weight management category. 

Hims & Hers reported 2 million subscribers this quarter, up from 1.4 million last year. Quarterly revenue was $401.6 million compared with $226.7 million in 2023.

Dudum said the company's Hers business surpassed 400,000 subscribers in the third quarter and was at an inflection point. On Oct. 21, the company named Dr. Jessica Shepherd as the first chief medical officer of the Hers brand.