Hims & Hers Health Inc. ( HIMS ) shares are trading lower Tuesday after GoodRx Inc. announced a collaboration with Novo Nordisk to provide discounted access to two of the most in-demand GLP-1 drugs, Ozempic and Wegovy.

HIMS is taking a hit from negative sentiment. See what is driving the move here.

What To Know: Under the agreement, all strengths of the medications will now be available to eligible self-paying patients at $499 per month through GoodRx's ( GDRX ) platform.

The announcement is significant because it directly impacts Hims & Hers, which recently expanded into the GLP-1 space by offering telehealth-based access to weight loss treatments. Lower-cost access through GoodRx ( GDRX ), a platform already used by millions of Americans seeking medication discounts, raises competitive pressure on Hims by offering patients a more affordable and established channel for the same drugs.

GLP-1 medications have become one of the most sought-after treatments for obesity and diabetes, with demand rising sharply in recent years. Hims has positioned itself as a telehealth provider making these treatments accessible online, while also bundling care services around them. However, GoodRx's ( GDRX ) new pricing deal with Novo Nordisk undercuts Hims' model by addressing one of the biggest barriers in the market, high out-of-pocket costs.

For investors, the move highlights intensifying competition in a sector that has become a key growth driver for Hims. While Hims has differentiated itself with a strong direct-to-consumer brand and subscription-based model, GoodRx's ( GDRX ) ability to lower prices in partnership with a drug manufacturer poses a challenge to its pricing power and market share.

The drop in Hims & Hers shares reflects concerns that lower pricing alternatives could slow the company's momentum in its weight-loss business, which has been a major focus of growth and investor optimism in recent quarters.

HIMS Price Action: Hims & Hers shares were down 6.44% at $42.18 at publication on Tuesday, according to Benzinga Pro.

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