Core Viewpoint - Hims & Hers Health has announced the offering of Eli Lilly's Zepbound, a weight loss drug, which is seen as a significant development despite concerns about its potential impact on the company's growth [1][5][9] Group 1: Product Offerings - Hims & Hers Health will now provide Zepbound, which has shown an average weight loss of around 21% at the highest dose, outperforming Novo Nordisk's Wegovy, which has an average weight loss of 15% [2][4] - The company will also offer liraglutide, another weight loss treatment, priced at $299 per month, significantly lower than Zepbound's $1,899 per month [10][11] Group 2: Market Reaction - Following the announcement of Zepbound, Hims & Hers shares rose by 5%, indicating positive market sentiment [2] - However, after the FDA announced the end of the semaglutide shortage, Hims' shares plummeted by nearly 26%, highlighting the volatility in the company's stock performance [4][5] Group 3: Competitive Landscape - Eli Lilly clarified that it has no affiliation with Hims & Hers, suggesting that Hims is acting merely as a middleman without unique business advantages [7][8] - The pricing strategy for Zepbound raises concerns, as it is significantly higher than Eli Lilly's direct offering, which could deter potential customers [8][9] Group 4: Future Growth Potential - The addition of liraglutide may cater to a niche market for patients looking to lose smaller amounts of weight, potentially expanding Hims' subscriber base [12][13] - Overall, the recent announcements are not seen as groundbreaking, but they may help maintain interest in Hims' weight loss offerings [13]

Core Insights - Viking Therapeutics is positioned in the rapidly growing weight loss drug market, which is projected to exceed $100 billion by the end of the decade according to Morgan Stanley analysts [1] - The company is currently conducting clinical trials for its VK2735 drug, which has shown promising results [1][3] - Despite a significant stock surge of 121% following positive trial results last year, Viking's stock has declined approximately 40% this year [2] Company Developments - Viking has completed enrollment for a phase 2 trial of its VK2735 oral candidate, with results expected in the second half of this year [3] - The VK2735 injectable formulation has met primary and secondary endpoints in trials, showing a mean body weight reduction of up to 14.7% after 13 weeks [7] - The oral version of VK2735 demonstrated weight loss of up to 8.2% in just 28 days during phase 1 trials [7] Industry Context - The weight loss drug market is currently dominated by GLP-1 and dual GIP/GLP-1 receptor agonists, such as Ozempic and Wegovy from Novo Nordisk, and Mounjaro and Zepbound from Eli Lilly [4][5] - High demand for these drugs has led to them being on the FDA's shortage list, which has only recently changed due to increased manufacturing capacity [5] - There is potential for Viking to carve out a market share in this competitive landscape, especially given the high demand for weight loss solutions [8] Financial Position - Viking Therapeutics has over $900 million in cash, which supports the development of its weight loss program [9] - There is speculation that Viking could attract takeover offers from larger pharmaceutical companies interested in its weight loss portfolio [9]

A version of this article first appeared in CNBC's Healthy Returns newsletter, which brings the latest health-care news straight to your inbox. Subscribe here to receive future editions.The booming weight loss drug market has gained a new potential competitor. AbbVie said on Monday that it will pay up to $2.2 billion to develop Danish drugmaker Gubra's experimental obesity drug, marking its late foray into the segment. Under the terms of the deal, the pharmaceutical giant will pay Gubra $350 million upfront ...