Rachel Warren

I do think the opportunity for a lot of these telehealth companies like the HIMS and HERS of the world is probably in the long run going to be in these branded partnerships with key players like Novo Nordisk and Eli Lilly.

For example, there was a time when HIMS and HERS were manufacturing compounded versions of these GLP-1s, which they were legally allowed to do when there was a shortage, the shortage is over.

Now, there's this legal gray area in which they operate, where they're able to offer individualized doses.

But there's some concern about the safety there that's not specifically vetted by the FDA versus getting it straight from the source, like Eli Lilly and Nova Nordisk.

And those companies, I will note, also have their own direct-to-consumer platforms where they are offering, in many cases, cheaper... Which does, if you look at those sites, it does remind me a little bit of Sears having a website in 1998.

No, no, no.

It's not necessarily the most high-tech space.

But it is very much, I think, a dynamic where these companies are recognizing that they need to have these direct-to-consumer options in order to get their product to more and more customers.

And they're adapting to that price sensitivity.

You've got Eli Lilly, for example, that's offering zep-bound vials for anywhere from $349 to $499 a month.

that's much cheaper than the average cost of about $1,000 per month without insurance that a lot of consumers contend with.

I think we'll see more of that.

There's been deals that companies like Eli Lilly and Novo have made with Medicare that could open up a vast new market.

But you got to remember, the price of manufacturing these GLP-1 drugs is still relatively low compared to the cost at which those companies are going to sell them, even if they lower some of these prices.

The margins are still expansive, and there's a lot of potential for these drugs beyond diabetes and obesity.

That's another key area where you could be seeing a lot of new markets unlocked in the next decade or so.

I think they're really trying to see where the business can go from here.

Obviously, we know under Peter Stern, the strategy has really been shifting towards trying to seek profitability, subscription services, AI-powered software.

We know that's been the vision.

Last month, they launched this completely new lineup.