The weight-loss drug will be offered through LifeMD for $500 per month. / Photo: LifeMD
Quotes on the telehealth company LifeMD jumped more than 40% yesterday, April 29, after it announced that its platform would offer one of the bestselling weight-loss drugs with no insurance approval required.
Details
Yesterday, LifeMD stock jumped 41% to $8.60 per share. Earlier in the day, the company announced a partnership with obesity drug maker Novo Nordisk, which will provide LifeMD customers with broad access to Wegovy, an Ozempic alternative. These drugs are prescribed to overweight individuals to help manage and reduce weight, lowering the risk of cardiovascular events.
The telehealth company plans to distribute the drug through NovoCare pharmacies in the U.S., which Denmark’s Novo Nordisk — the maker of Ozempic and Wegovy — launched in March.
LifeMD patients will be able to get all FDA-approved dose strengths of the medication delivered to their homes. The drug will cost $500 per month, and patients will be able to pay for it out of pocket, without going through their insurance provider.
For investors
The rising popularity of weight-loss medications in recent years has caused the stocks of manufacturers and distributors of such drugs to soar. On April 17, shares of Novo Nordisk’s key rival — the U.S. pharmaceutical company Eli Lilly — jumped after it announced that its experimental weight-loss pill orforglipron had successfully completed clinical trials for type 2 diabetes.
LifeMD is not the only company to strike a deal with Novo Nordisk: Hims & Hers Health and Ro, which offer similar telehealth services, have also secured rights to distribute Wegovy. This news triggered a 33% surge in Hims & Hers stock (Ro is a private company).
About LifeMD
LifeMD is a U.S.-based telehealth company that enables users to consult doctors and receive prescriptions quickly, without involving insurance providers.
The company’s main focus and growth driver is weight management services. Its products also include a telehealth platform for men’s health, RexMD, and virtual consultations with sleep and hair-loss specialists. On April 28, LifeMD announced the acquisition of key assets from Optimal Human Health MD, a women's health virtual care provider.
Over the last few years, a significant number of customer complaints have been filed with the Better Business Bureau against the company, mostly around billing and canceling subscriptions. In April 2021, LifeMD stock dropped 22% after the short seller Culper Research accused the company of fraud, using unlicensed doctors, and aggressive marketing tactics. LifeMD called the allegations false. In December 2024, LA Law Group, a consumer rights law firm, announced an investigation into LifeMD for alleged deceptive subscription practices and began seeking affected users.
