The news: Hims & Hers said during its Q1 2025 earnings call that it’s looking to strike a deal with Eli Lilly to offer the drugmaker’s weight loss drugs at a discount for cash-pay patients.

How we got here: Hims recently partnered with Novo Nordisk to offer Wegovy at a steep markdown for members paying out of pocket.

The tie-up could help Hims keep and attract members who don’t want to pay full price for weight loss drugs, but whose insurance won’t cover the medications. Meanwhile, partnering with a popular telehealth provider could result in more Wegovy prescription sales for Novo.

Why Lilly might not want the same deal—yet: Lilly said last month it has no affiliation with Hims and has warned consumers against the dangers of compounded drugs. It just recently sued a few telehealth companies (not Hims) over allegedly instructing their providers to prescribe the knockoff versions.

Lilly has collaborations with a range of telehealth providers through its LillyDirect D2C platform in which patients can get reduced-priced Zepbound. But Lilly could be turned off that Hims hasn’t committed to stop prescribing compounded medications.

• Although the FDA’s window for allowing the sale of compounded GLP-1 “copycats” is closing, Hims will still prescribe personalized semaglutide when its doctors say it’s clinically necessary. Hims CEO Andrew Dudum said he was up front about this plan with Novo.
• This is technically allowed by the FDA even when drug shortages end.

Our prediction: We think Lilly will eventually integrate its D2C platform with Hims as the market opportunity will be too big to pass up.

Potentially millions of people who have been taking compounded GLP-1s will soon be looking for alternative weight loss drug options without breaking the bank. Many of those are probably Hims members, meaning it would be unwise for Lilly to cede that patient population to Novo.

Plus, the D2C market for weight loss drugs is already paying off. Lilly said on its Q1 earnings call that about 10% of its first-quarter Zepbound sales and 25% of new Zepbound prescriptions came through the self-pay channel.