Walgreens, Hims stocks drop as Lilly rolls out cheap weight-loss drugs (NASDAQ:WBA)

Walgreens Boots Alliance (NASDAQ:WBA) and Hims & Hers (NYSE:HIMS) stocks had been each down 7% in early afternoon buying and selling Tuesday following information that Eli Lilly (LLY) had slashed costs for low-dose formulations of its weight-loss drug Zepbound bought via its direct-to-consumer web site, LillyDirect.

Lilly (LLY) introduced early Tuesday that it deliberate roll again costs for the 2 lowest doses of Zepbound, additionally recognized as tirzepatide, making the formulations a minimum of 50% cheaper than the checklist costs of all different GPL-1 drugs for weight problems presently available on the market, in accordance with a press release.

Zepbound belongs to a category of medicines recognized as GLP-1s, which additionally contains Novo Nordisk’s (NVO) massively widespread weight-loss drug Wegovy, additionally recognized as semaglutide. In May, Hims & Hers (HIMS) introduced it deliberate to promote compounded variations of semaglutide at a major low cost to Novo Nordisk’s (NVO) branded merchandise.

The value breaks are legitimate for two.5mg and 5.0 mg doses of Zepbound bought via the self-pay channel on LillyDirect and received’t apply to doses lined by insurance coverage.

“The self-pay channel enables a transparent price by removing third-party supply chain entities and allowing patients to access savings directly outside of insurance,” Lilly stated in a press release.

Also weighing on shares of Walgreens was an announcement that Pfizer (PFE) has rolled its direct-to-consumer web site, PfizerForAll.

Pfizer can be creating a GLP-1 weight-loss drug, an orally administered GLP-1 receptor agonist referred to as danuglipron.

Shares of CVS Health (CVS) additionally moved decrease following the information, sliding almost 2% in afternoon motion, whereas Novo Nordisk (NVO) had been fractionally decrease. Shares of Viking Therapeutics (VKTX), which can be creating GLP-1 drugs, had been down 7%.

(Adds Pfizer’s weight-loss drug candidate.)