Evernorth weight loss drug price point attractive compared to Hims, says Truist

Truist notes that Evernorth, part of Cigna (CI), announced a pharmacy benefit offering that would make weight loss medications Wegovy and Zepbound available at a monthly cost not exceeding $200 to patients, adding that Evernorth also noted in its release that the prior authorization processes accompanying the new offering will be simplified and automated for faster access. “Considering the big three PBMs have historically moved in lock step with each other, we believe it is very likely that other PBMs will follow suit in some way on weight loss medication coverage,” the analyst tells investors. Though it remains to be seen how onerous it will be for patients to get access to these drugs, the price point of $200/month is “highly attractive compared to other price points in the market,” including Hims & Hers’ (HIMS) compounded Semaglutide, Wegovy and Liraglutide subscription programs, adds the analyst. The firm keeps a Hold rating and $45 price target on Hims shares, which are down about 11% to $51.41 in early Thursday morning trading.