Hims & Hers Health Drops As Lilly Launches Single Dose Vials Of Zepbound By Investing.com

Hims & Hers Health saw its shares fall more than 6% Tuesday morning in response to Eli Lilly’s (NYSE: ) latest announcement.

Lilly said it introduced single-dose vials of its obesity drug, Zepbound, at a 50 percent discount compared to other incretin drugs. The move comes amid growing competition in the obesity treatment market.

Lilly’s new offering includes 2.5 mg and 5 mg single-dose vials priced at $399 and $549, respectively, for a four-week supply. This price significantly undercuts the list prices of competing drugs.

The vials will be available through Lilly’s direct-to-patient service, LillyDirect, and are designed to provide a more affordable option for those paying out of pocket without the need for insurance.

According to Citi analysts, Lilly’s initiative represents a “shot across the bow” for companies involved in the GLP-1 compound space, including Hims & Hers Health.

Analysts noted that Lilly’s move aims to address concerns about “counterfeit, fake, unreliable or untested compliance” and represents a direct challenge to the combination alternatives on the market.

Hims & Hers currently sells combination semaglutide, a product that may now face increased competition from this branded option.

Zepbound’s single-dose vials are expected to boost consumer confidence with their brand assurance, which could hurt companies like Hims & Hers.

The implications of Lilly’s new pricing strategy could intensify market pressures on similar players such as HIMS.