Hims ends GLP-1 compounding in Lilly deal as shares rally

Hims & Hers said the agreement with Eli Lilly means it will no longer compound GLP-1 medications such as Zepbound in the future. The arrangement links Hims’ weight-loss platform with Lilly’s branded treatment portfolio, but the terms that determine the financial contribution are not specified here.

The decision changes Hims’ position in the GLP-1 market from compounding toward supplying Lilly products through its platform. Hims reported $2.3 billion of revenue for fiscal 2025, up 59.0% year over year, giving the company a sizable existing base against which the partnership’s contribution will be measured.

For Hims, the mechanism is the agreement with Lilly and the resulting change in its GLP-1 offering. For Lilly, the arrangement adds a digital-health distribution channel while Hims gives up compounding Zepbound and similar medicines.

The available terms leave the economics and operational scope of the agreement uncertain. It is also unclear how quickly Hims will transition customers from compounded products to Lilly’s branded medicines or how the change will affect its margins.

The next evidence will be Hims’ disclosures on the agreement’s launch, customer transition and financial contribution, alongside the company’s next results. Revenue growth, gross margin and net margin will show whether the new arrangement is replacing compounded-product economics or expanding the platform’s overall performance.