Hims & Hers falls after Cigna caps out-of-pocket costs on weight-loss drugs

Shares of telehealth firm Hims & Hers Health HIMS.N fall 7.3% to $53.78 premarket

Late on Wednesday, health insurer Cigna CI.N said it will cap out-of-pocket costs at $200 per month for patients using the weight-loss drugs Wegovy and Zepbound through an add-on to its pharmacy benefit management plans

"The price point of $200/month is highly attractive compared to other price points in the market, including HIMS' compounded semaglutide at $399/month for 1-month subscription, Wegovy at $899/month for 1-month subscription"- brokerage Truist Securities

Brokerage adds that HIMS has previously noted "it had very little interest in integrating insurance onto its platform", but, Cigna's weight loss
coverage announcement "essentially challenges that argument"

Brokerage estimates about $721 million of weight-loss drug-related revenues in 2025, which reflects weight-loss revenues and subscribers stepping down sequentially from Q1 to Q2

Up to last close, stock more than doubled YTD