Citi says Evernorth plan ‘slight headwind’ to Hims & Hers

Citi keeps a Sell rating on Hims & Hers (HIMS) with a $30 price target after Cigna’s (CI) Evernorth announced it is launching a new benefit option that caps patient out-of-pocket costs for Wegovy and Zepbound at $200 per month. This is lower than the cash pay price for Wegovy offered through NovoCare and Tirzepatide Vials offered through LillyDirect, the analyst tells investors in a research note. Citi says the Evernorth’s offering also has the benefit of counting out-of-pocket costs towards the patients’ annual deductible and simplifying prior authorization. The firm believes this will be a “slight headwind” to Hims & Hers’ newly announced NovoCare partnership where patients get access to Wegovy and ongoing clinician and nutritional support for as little as $599 per month. The direct-to-consumer platforms have benefited from employer reluctance to cover GLP-1s for weight loss due to prohibitive costs, but Evernorth’s offering may accelerate employer coverage adoption, contends Citi.