Hims & Hers Health Inc. (NYSE:HIMS) CEO Andrew Dudum defended the telehealth company as it navigates a U.S. Federal Trade Commission lawsuit concerning data privacy and advertising practices.
Speaking during a CNBC interview, the executive argued that regulators fundamentally misunderstand how his firm is modernizing the medical landscape.
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In July, the FTC launched a major lawsuit against Hims & Hers, claiming the company unlawfully shared sensitive customer health information with online advertisers and utilized deceptive billing tactics.
The FTC claimed sensitive medical data was improperly funneled to digital advertising firms, specifically highlighting Meta Platforms Inc. (NASDAQ:META) and Snap Inc. (NYSE:SNAP).
“I can’t say much other than the fact that, you know when you’re changing the fundamental understanding of how a traditional system like health care works, and you’re rebuilding it in the digital ecosystem,” he told Andrew Ross Sorkin on CNBC’s Squawk Box.
“I think it takes time for people to understand how to do that the right way, and we’ve worked for many years with the FTC to walk them through that. And I think ultimately they wanted more of a headline than a real agreement here.”
Transitioning To Branded Weight Loss Drugs
The CEO also discussed the platform’s shift from compounded weight loss medications to branded GLP-1 treatments. During recent industry-wide shortages, the company legally provided discounted, copycat versions of highly sought-after obesity drugs.
Once market supply levels recovered, Novo Nordisk A/S (NYSE:NVO) filed a patent infringement lawsuit against the platform. The Danish pharmaceutical giant ultimately dropped the legal challenge in March after the telehealth firm agreed to offer Novo’s branded medications directly to its users.
Looking ahead, Dudum expects out-of-pocket costs for cash-paying patients to fall significantly. He projects monthly medication prices will drop to a range of $40 to $50, down from current rates of roughly $150 to $200, depending on the specific drug format.
Investing Heavily In Artificial Intelligence
Furthermore, the chief executive envisions artificial intelligence radically reshaping the medical sector. He said the company is actively increasing its investments to transition into an “AI-native” organization.
Rather than relying on external vendors, the firm is abandoning third-party AI agents to build all artificial intelligence capabilities entirely in-house.
HIMS Stock Price Activity: Hims & Hers Health shares were up 8% at $29.58 at the time of publication on Wednesday,
according to Benzinga Pro data.
Image via Shutterstock
