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The US telehealth platform HIMS & HERS is exploring the provision of replica obesity medications in the UK and Europe, and wants to provide patients with a cheaper and more personalized way to take weight loss medication.
HIMS CEO Andrew Dudum said there is a “big opportunity” for obesity as he announced the acquisition of European rival Zava, which already sells several weight loss treatments.
Based in London, Zava has more than 1.3 million patients per year between the UK, Ireland, Germany and France. The acquisition in undisclosed amounts is cash and HIMS will work with Zava to expand to other European countries and beyond.
“We are clearly excited to be able to handle as many patients as possible and have broad access to this care category,” Dudum told the Financial Times. “We believe in this ability to deliver true precision medicines to large patients at affordable prices.”
Sales of replica weight loss drugs containing patented active ingredients and known as combined drugs spiked in the US after pharmacies were allowed to make them during a shortage of branded drugs developed by Novo Nordisk and Eli Lilly.
The American Combined Industry Association estimates that around 2 million patients were taking these drugs earlier this year, and may have contributed to Novo Nordisk’s lower growth in particular than expected.
However, the shortage is still over, and compounding interest is prohibited on a large scale. Telehealth platforms such as HIMS continue to sell several personalized replicas, for example, by offering a combination of products designed to reduce various doses and side effects.
Dudum said he was “surprising” if there were “a vast choice of obesity, including that type of personalization, or similar types,” adding that this should be possible under current regulations in the UK and Europe.
Some pharmacies are permitted in the UK, known as “specials” to create drugs to the needs of specific patients. HIMS already offers these individualized medications for dermatology and sexually healthy patients.
Zava has reported “large demand” for weight management services that have so far sold branded obesity medications, particularly for patients not paid by UK National Health Services, according to CEO David Meinertz.
HIMS stock has skyrocketed 177% over the past year as the company benefits from the booming US obesity treatment market. As the replica drug market shrinks, Telehealth providers have signed a deal with Novo Nordisk to provide obesity medicines, saying they are looking forward to more collaboration.
Dudum said he thinks the company is like “Switzerland.” It offers prescriptions for neutral, branded medications and continues to formulate “meaning small group of patients” in the US.
