Health platform now offering compounded Ozempic and Wegovy at reduced prices

While shortages of the popular weight loss drugs persist, Hims & Hers, a San Francisco-based telehealth company, will offer access to a compounded form of the GLP-1 weight-loss drugs, starting at $199 a month.

Hims & Hers, a San Francisco-based health and wellness platform, announced last month that it will offer access to a compounded GLP-1 weight-loss injections at a competitive price.

“Starting today, we are providing access to compounded GLP-1 treatments for eligible customers at prices starting at $199 monthly,” the company said in a news release. “We are providing access to compounded GLP-1s, which means customers can access the same active ingredient as Ozempic and Wegovy without navigating the shortages that are currently limiting access to the medication.”

GLP-1 drugs, which are used for both diabetes and obesity, are in strong demand as manufacturers scramble to ramp up supply. Ozempic maker Novo Nordisk said earlier that shortages of the drug will persist through the year because of rising demand and manufacturing capacity constraints.

Although Wegovy and Ozempic are protected by patents, U.S. regulators allow pharmacies to make compounded versions of drugs that are in short supply. However, the U.S. Food and Drug Administration does not test these made-on-site drug versions for safety. In January, the agency warned against using compounded forms of weight-loss drugs when FDA-approved versions are available. The FDA does not review compounded versions of these drugs for safety, effectiveness or quality.

“We knew GLP-1s were not for everyone, and the shortages across the industry made GLP-1s too expensive and too challenging to physically access,” the news release said. “As we shared in our Q1 earnings date, this solution continues to perform as expected and is projected to generate over $100 million in revenue by 2025. However, it is now clear that the portfolio of GLP-1 drugs will remain in shortage for some amount of time — and at Hims & Hers, we believe any amount of time is too long to wait for the care you deserve and the treatments you need.”

Hims & Hers-affiliated pharmacies fulfill and ship GLP-1 injections. After a consistent supply is available through the pharmacies’ wholesaler, the company plans to also make branded options available to customers, expanding the offering beyond the current oral medication kits, which are priced at $79 a month, and compounded GLP-1 injectable medications.

Related: Weight loss drug shortage: Zepbound and Wegovy in short supply, says FDA

“The core of our business is to offer a truly personalized experience that customers can trust and rely on,” said Andrew Dudum, CEO and co-founder of Hims & Hers. “We’ve leveraged our size and scale to secure access to one of the highest-quality supplies of compounded GLP-1 injections available today. We’re passing that access and value along to our customers, who deserve the highest standard of clinical safety and efficacy to meet their goals, and we’re doing it in a safe, affordable way that others can’t deliver.”

The price of company stock jumped by 27% following Monday’s announcement.