Hims & Hers, Nestle Enter the GLP-1 Race
Telehealth platform Hims & Hers is releasing a low-cost option for weight-loss drug seekers. Nestle, meanwhile, is launching a frozen food line meant to help GLP-1 users preserve muscle
Hims & Hers Health is finally tossing its hat into the GLP-1 weight loss medication ring — at a discounted rate. The fast-growing telehealth platform will now provide access to compounded GLP-1s for eligible consumers, news that caused the company’s shares to surge.
Nestle is also looking to capitalize on the medically assisted weight loss craze: the food giant is releasing a frozen food line designed to help GLP-1-takers preserve their lean muscle mass with protein-packed meals.
Anti-obesity drugs such as Ozempic and Wegovy have become household names over the last year and have routinely experienced shortages due to surging demand — much to the dismay of consumers eager to get their hands on the high-priced medications.
Hims & Hers has teamed up with a U.S. drug manufacturer to provide generic medications with the same active ingredients as the Ozempic and Wegovy, circumventing drug shortages and ensuring a lower-than-average price point. The GLP-1 injections are fulfilled and shipped from Hims & Hers-affiliated pharmacies.
In a blog posted on the Hims & Hers website, the company acknowledged it initially prioritized access to “non-GLP-1 treatments” but notes that it’s become clear that GLP-1 drugs will remain in shortage and that this is placing an “immense strain” on Americans struggling with obesity.
The weight loss medication costs start at $79 per month for oral medication kits and $199 a month for compounded GLP-1 injections, and they include unlimited medical consultations with a licensed provider.
“The core of our business is to offer a truly personalized experience that customers can trust and rely on,” Hims & Hers CEO and co-founder Andrew Dudum said. “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 health and wellness platform says it will make branded options available once a consistent supply is available through the pharmacies’ wholesaler, bringing new options beyond its oral medication kits and compounded weight loss injectable medications.
The telehealth company, which was founded in 2017 and became a unicorn two years later, recently announced that it’s increasing its outlook for 2024, expecting $1.2-1.23 billion in revenue and $120-135 million in Adjusted EBITDA.
Big-Name Brands Embrace Medical Weight Loss
The Vitamin Shoppe is also pushing into the weight loss drug space with its debut of Whole Health Rx, a telehealth service that will offer access to Ozempic, Mounjaro and compounded versions — similar to that of telehealth provider Ro.
The booming anti-obesity drug market — which has the potential to grow to $100 billion by 2030 — is also impacting the food and beverage industry, from prebiotic superfood brands to high-fiber powders.
Nestle recently announced a new line of “GLP-1 companion foods” dubbed Vital Pursuit. The frozen food products (which include bowls with whole grains or protein pasta, sandwich melts and pizzas) are portion-controlled and packed with protein, fiber and essential nutrients.
“As the use of medications to support weight loss continues to rise, we see an opportunity to serve those consumers,” Nestle North America CEO Steve Presley said. “Vital Pursuit provides accessible, great-tasting food options that support the needs of consumers in this emerging category.”
Nestlé’s GLP-1-supporting food line will be available later this year.
