Telehealth Platform Hims & Hers Enters Weight-Loss Drug Price War

Hims & Hers integrates Wegovy into a subscription model as Eli Lilly launches oral Foundayo, intensifying the GLP-1 market battle despite strong financials.

The competitive landscape for GLP-1 medications is shifting rapidly. Telehealth provider Hims & Hers has announced a strategic move, integrating Novo Nordisk's Wegovy into a new subscription model on its platform. This development coincides with rival Eli Lilly launching Foundayo, an additional oral weight-loss treatment, intensifying the battle for market share in this lucrative sector.

Financial Performance Remains Strong Amid Stock Decline

Despite recent stock market pressures, Hims & Hers continues to demonstrate robust operational health. The company reported full-year 2025 revenue of approximately $2.35 billion, representing a significant 59% increase over the prior year. Its subscriber base expanded to over 2.5 million users. For the fourth quarter of 2025, revenue rose 28% to $617.8 million. Annual net profit reached $128 million, while adjusted EBITDA more than doubled, climbing from $177 million to $318 million.

The company's equity performance, however, has not reflected this operational strength. Over the past six months, the share price has declined by roughly 63%. Current valuation models project a price target of $37 by December 2028. Based on a recent trading price near $21, this implies a potential upside of about 78%. These forecasts are grounded in expectations of sustained annual revenue growth of 15.6% and an operating margin of 6.7%.

Subscription Model Aims to Lower Patient Costs

Through its partnership with Novo Nordisk, Hims & Hers is now offering both Wegovy and Ozempic via a structured subscription plan. This model brings down monthly costs for consumers. Pricing for Wegovy injections is set between $249 and $329 per month, depending on the subscription term, which is notably below the previous standard price of $349. Oral versions are available for between $249 and $289 monthly.

This pricing strategy positions the telehealth firm as a more affordable channel. The move is also seen as an effort to bolster Novo Nordisk, which currently holds an estimated 39% of the U.S. GLP-1 market, against leader Eli Lilly's dominant 60% share.

New Oral Competitor Increases Market Pressure

The competitive dynamics are further complicated by the recent regulatory approval of Eli Lilly's Foundayo. As the second oral GLP-1 drug following Novo Nordisk's pill version of Wegovy, Foundayo adds another option for patients. In its highest-dose Phase 3 trial, the treatment achieved an average weight reduction of 12.4% over a 72-week period.

Crucially, its pricing for self-pay patients ranges from $149 to $349 per month. At its most affordable tier, this makes Foundayo substantially cheaper than the Wegovy offerings available through the Hims & Hers platform. The arrival of such cost-effective oral alternatives will test the company's ability to maintain its margins while competing on price.

The future trajectory for Hims & Hers will largely depend on how effectively it can defend its profitability in a market increasingly crowded with lower-priced options like Foundayo.