Hims & Hers Stock Jumps 4.7% on Eli Lilly GLP-1 Deal

Hims & Hers Health shares rallied 4.7% on Friday morning after the telehealth company announced an arrangement with Eli Lilly, the world's largest drugmaker, to sell Lilly's GLP-1 medications directly through its platform. The deal gives Hims patients in its weight-loss program direct access to Zepbound, Lilly's popular GLP-1 injection, and Foundayo, its new GLP-1 pill — without leaving the Hims ecosystem.

The arrangement fixes a friction point the company itself acknowledged. Previously, Hims patients who wanted Zepbound or Foundayo were redirected to Lilly's own telehealth platform to complete the purchase. Hims spokesperson Jillian Kight told MarketWatch: "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." She added: "It also meant customers were required to manage two different platforms and two different monthly payments."

What does the deal change for patients?

Under the new structure, the medication purchase stays inside the Hims platform. For patients, costs start at $299 per month for Zepbound and $149 per month for Foundayo through Hims, on top of the company's weight-loss membership fee of $149 per month. That membership bundles direct messaging with providers, discounts at companies including meal-kit service HelloFresh, and a smart scale to track weight loss at home. A patient on Zepbound, in other words, pays roughly $448 per month before any other costs.

The company, considered one of the largest direct-to-consumer telehealth platforms by volume, has walked this path before. Earlier this year it struck a similar arrangement with Novo Nordisk for that company's GLP-1 franchise. That agreement came only after a legal dispute over Hims' compounding of Novo's GLP-1 pill.

What did Hims give up?

The Lilly deal has a condition. As part of the agreement, 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 — which makes the concession largely symbolic, but also locks the door on a cheaper workaround if drug shortages or pricing pressures ever made compounding attractive again. The company has not said whether the deal includes any revenue-sharing terms or purchase commitments.

The fine print matters here. Compounding was the flashpoint in the Novo Nordisk legal fight, and Hims has now voluntarily foreclosed that option with a second major manufacturer. In exchange, it gets something it previously lacked: integrated sales of the branded drugs its weight-loss customers were already seeking.

Is the stock rally justified?

One morning of gains does not reverse a rough year. Hims & Hers stock remains down 25% so far in 2025, meaning the 4.7% bump recovers only a fraction of the decline. The Lilly deal addresses a real operational friction — the two-platform, two-payment problem the spokesperson described — but the company has not disclosed the economics of the arrangement, including how margins on direct Lilly sales compare with its older compounded offerings.

For now, investors are pricing in the strategic value of alignment with the world's largest drugmaker. Whether that value shows up in revenue will depend on how many of Hims' weight-loss members convert to branded GLP-1 purchases at $299 per month, and at what margin the platform keeps.