HIMS Stock Climbs Overnight: Oscar Health CEO Courts Hims For New Drug Marketplace

• Bertolini said the insurer is talking with Hims about selling retail drugs through Lucie.
• Lucie lets consumers compare insurance plans, supplemental benefits and cash-pay healthcare services.
• Oscar believes Lucie can target over 200 million lives, potentially creating a new distribution channel for Hims.

Shares of Hims & Hers (HIMS) climbed 0.2% overnight late Sunday after Oscar Health CEO Mark Bertolini revealed that the insurer is talking to the digital-health company about offering retail drugs through its new Lucie consumer marketplace.

HIMS stock fell 2% on Friday, extending losses for the week to 11%. 

Oscar Courts Hims For Retail Drugs

Oscar launched Lucie Health Marketplace in April as an AI-powered storefront where consumers and brokers can compare individual-market insurance plans from multiple carriers, including Oscar’s competitors, alongside supplemental benefits and cash-pay services. The platform is primarily for Individual Coverage Health Reimbursement Arrangements (ICHRAs), through which employers give workers money to select their own health coverage.

Employees could use funds remaining after premiums to cover out-of-pocket expenses or purchase dental, ancillary and retail-health products. Aflac and Allstate Health are already on the marketplace.

“People that want to sell retail drugs — we’re talking to Hims, we’re talking to all these other players,” Bertolini said over a weekend interview. Oscar wants to build a marketplace where consumers can compare healthcare products based on “convenience and cost and value,” he added.

Oscar Eyes Hims For GLP-1 Access 

Bertolini specifically identified GLP-1 weight-loss drugs as a potential use case. He was talking about consumers shopping through Lucie for a GLP-1 that is not covered by their insurance, using employer-provided funds to compare the lowest cash prices from Hims, Mark Cuban’s drug business or other sellers.

Using an uncovered GLP-1 as an example, Bertolini said consumers could turn to the marketplace to determine: “Where can I get that cheapest?” The model aligns with Hims’ direct-to-consumer platform, which combines access to medications with providers, pharmacies and ongoing care.

Hims CEO Andrew Dudum said on the company’s latest second-quarter call that an expanded selection of branded weight-loss treatments helped reaccelerate U.S. growth. He also called the company’s relationship with Novo Nordisk “extremely” exciting and called demand for the Wegovy pill “staggering.” “We are the largest or one of the largest players that are helping people access that pill,” Dudum said, adding that the launch opened the “floodgates” for patients concerned about injections and pricing.

Oscar’s Lucie Bet Targets 200M Lives 

Oscar currently operates primarily in the Affordable Care Act individual market, which Bertolini estimated at 40 million people. Through ICHRA, Lucie and related offerings, he sees an opportunity spanning small and midsized businesses, gig workers, part-time employees, entrepreneurs and early retirees.

“The individual market will be the ultimate market for all Americans,” Bertolini said. “The TAM will be over 200 million lives.” Inclusion in Lucie could give Hims an additional distribution channel by placing its medications before consumers actively shopping for healthcare. However, Oscar has not disclosed how many users Hims could potentially reach. Bertolini said Oscar’s emerging non-insurance business could generate a 36% margin and become “bigger for all of us than anything we do on the insurance side.”

How Do Retail Traders Feel About HIMS?

On Stocktwits, retail sentiment for HIMS improved to ‘bullish’ from ‘neutral’ levels a week ago amid ‘high’ message volume.

One user said, “$HIMS Definitely under 25 short time. Maybe 13 longer, who knows. Well somebody knows.”

Another user said, “$HIMS big week Hims bulls. $27.50-28.20 needs to hold otherwise $24-25 is coming this week. A hold of 28 support gives us a retest of $30-32”

HIMS stock has declined 40% over the past year. 

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