Shares of Hims & Hers Health needed a shot in the arm and they received one on Friday.
Shares have fallen 26% this year, and the stock has retreated 37% since closing at $38.28 on July 6. It has closed below the key 200-day moving average in each of the past four trading sessions.
On Friday, however, Hims stock rose 6.8% to $25.70 in premarket trading Friday and it was due to an agreement with Eli Lilly, the world's largest pharmaceutical company.
The two companies said Friday they have agreed to expand access to Eli Lilly's GLP-1 weight loss medications, Zepbound and Foundayo, through Hims & Hers consumer platform.
The agreement brings together Lilly's obesity medicines and Hims & Hers' consumer platform in which patients will be able to complete a consultation, receive a prescription if their provider determines it is appropriate, and have Food and Drug Administration-approved Lilly treatments shipped directly to their home.
Self-pay pricing starts at $149 per month for Foundayo and $299 per month for Zepbound, according to the companies.
"Millions of people turn to Hims & Hers for their care, and through this agreement, those patients now have a simple, more direct way to get FDA-approved Lilly medicine at an affordable price if prescribed," Eli Lilly executive Ilya Yuffa said in the media release Friday.
Importantly for Lilly, Hims & Hers has never offered access to compounded copies of Lilly's GLP-1s and has committed not to do so in the future, the company said Friday.
Hims & Hers has been retooling its core weight-loss business this year and shifting away from sales of compounded GLP-1s to branded versions of the medications.
Pharmaceutical companies has spent heavily heavily on weight loss medications and Eli Lilly has emerged as one if not the all-out leader in the space. Along with Lilly, there also is Novo Nordisk with its Wegovy weight-loss pill. Lilly's oral Foundayo, which gained approval in April, still lags behind Novo's Wegovy in prescription volume.
Shares of Eli Lilly declined 1% to $1,352.40 before the opening bell on Friday.