In July, the U.S. Federal Trade Commission, together with Los Angeles County and the state of Utah, filed a lawsuit against Hims & Hers Health Inc. The complaint alleges that the telehealth company shared users’ health information with advertisers such as Meta and Snap, charged for prescriptions before customers had spoken with a healthcare provider, and made it difficult for subscribers to cancel their plans.
Chief Executive Officer Andrew Dudum responded on CNBC’s Squawk Box, characterising the allegations as a misunderstanding of how the company is reshaping traditional healthcare within a digital ecosystem. He noted that Hims & Hers has worked with the FTC for many years to explain its model and suggested the regulator was seeking a headline rather than a substantive agreement.
Dudum reiterated that the firm’s business model is centred on expanding access to care and described Hims & Hers as “active disruptors” willing to challenge the status quo when it benefits consumers. He highlighted a recent shift in the company’s approach to GLP‑1 weight‑loss medications: during earlier shortages the firm sold lower‑priced copycat versions, but after supply normalised Novo Nordisk sued for patent infringement. In March, Novo Nordisk withdrew the suit, and Hims & Hers agreed to sell Novo’s branded GLP‑1 drugs on its platform. The CEO projected that prices for cash‑paying patients will decline to $40‑$50 per month from the current $150‑$200 range, depending on the medication form.
Looking ahead, Dudum said artificial intelligence will transform healthcare and announced that Hims & Hers is increasing its investment to become “AI native.” The company is moving away from third‑party AI agents to develop its own technology, asserting that generic foundational models are less valuable than the closed‑loop health data the firm possesses, which he described as its primary asset.