In just a few years, Hims & Hers Health Inc. reached almost $1 billion in sales by making it easy to buy cheap, generic versions of popular drugs such as Viagra. Now it’s using that playbook to jump into the hottest part of health-care: weight-loss shots.

And in typical fashion, a big part of the company’s pitch is the discount. Wegovy, made by Novo Nordisk A/S, costs roughly $1,350 for a month of injections without insurance, and Eli Lilly & Co.’s Zepbound is similarly priced. Hims said it’s offering a treatment with the same active ingredient as Wegovy for $199 a month. That undercuts big pharmaceutical by as much as 85 percent.

This will help customers access these drugs without “navigating the shortages and costs that are currently limiting access to the branded medications,” Hims said in a press release. The company’s stock shot up as much as 38 percent on Monday, the biggest intraday move in more than three years.

Hims can offer the prescription weight-loss drugs because US regulators have rules that allow pharmacies to make copycat versions of drugs in shortage, a practice that’s known as “compounding.” This exists to make drugs available when manufacturers can’t produce enough to meet demand or when a pharmacist needs to tweak a drug’s recipe to remove an ingredient that might cause an allergic reaction in some people, for example.

Compounding of weight-loss drugs has exploded as Lilly and Novo have failed to keep up with demand for the new drugs. Yet there’s little publicly available information on how many people are taking compounded versions of these drugs, known as GLP-1s for mimicking a hormone the body produces that helps people feel full. Novo and Lilly’s versions are currently protected by patents, meaning mass-produced generic versions aren’t yet available. But as long as they remain in shortage, compounded pharmacies can continue to produce these drugs at ever greater scale.

“It’s gonna be a big part of the weight loss category going forward,” Hims chief executive officer Andrew Dudum said in an interview. “Our belief is that compounding can be done very safely, if done correctly.”

Hims is among the dozens of telehealth companies that have been trying to tap into the insatiable demand for weight-loss drugs. In December, the company began prescribing a suite of drugs off-label for weight loss. That included the diabetes medication metformin and naltrexone, which is approved for alcohol-use disorder.

Those offerings are Hims’ fastest-growing division, and are on track to eclipse $100 million in revenue by next year, according to Dudum. The company’s stock has risen more than 60 percent this year, prior to the latest weight-loss news.

No FDA Approval

No one has a clear picture of just how much the compounded weight-loss drug market has grown. The FDA isn’t closely tracking it, neither are state health departments. Compounded medications are not technically approved by the FDA and don’t undergo the same rigorous review for safety, effectiveness or quality as branded and generic medications do.

Ro, another telehealth company that offers weight-loss shots, has also started offering compounded GLP-1s because of the shortages. WW International Inc., better known as WeightWatchers, does not support the use of compounded versions.

Dudum said the drugs will be made at an FDA-licensed facility that he described vaguely as “one of the largest generics manufacturers” in the country. He evaluated more than 100 potential partners before striking a deal with a supplier that offered enough assurances on volume to give him confidence that the company will be able to meet demand.

Hims is far from finished in weight-loss drugs. The company aims to offer compounded tirzepatide, the active ingredient in Lilly’s Mounjaro and Zepbound, in the next couple of months. Dudum also plans to integrate the real, name-brand drugs when adequate supply is available.

By Madison Muller and Jessica Nix

Learn more:

Why Weight-Loss Drugs Wegovy, Zepbound Are in Short Supply

Demand for the drugs has proven insatiable. Shortages have left patients already on the medications searching for their next dose and stymied new starters.

As of this month, the Aura Blockchain Consortium has created digital product passports containing information ranging from traceability credentials to storytelling around the product for more than 40 million items, the group said in a statement.

Among the physical items imbued with its digital identities, typically accessed through NFC chips or QR codes, are pieces from Prada’s Eternal Gold fine jewellery collection, Loro Piana’s linen André shirts, Rimowa suitcases and more than 580,000 items across OTB Group’s brands, including Marni, Maison Margiela and Jil Sander, it said.

Romain Carrere, who was named the group’s new chief executive and general secretary in September 2023, called it a “milestone” in the statement.

Aura was founded in April 2021 by a rare alliance of luxury players including LVMH, Prada Group and Richemont-owned Cartier, with OTB Group joining as a founding member soon after, with the goal of using blockchain technology to improve the traceability and transparency of luxury products. The group today bills itself as “the world’s leading blockchain partner” for luxury, though other companies — both blockchain-focused and not, including Arianee and EON — are also busy creating DPPs for fashion items.

Brands had begun adopting DPPs as a way to offer shoppers more information on their products and for purposes like enhanced storytelling. But the urgency has recently increased with the EU proposing new regulations that would require fashion and other industries to give each item its own DPP as early as 2026 under a broader push for corporate sustainability and transparency.

Learn more:

Millions of Luxury Products Now Come With Unique Digital Passports. Here’s What That Means.

Brands are starting to adopt the tags in large numbers as they prepare to meet major new EU regulations coming down the pipeline. They’re using the opportunity to build in customer-facing features that can appeal to shoppers, too.

Prada SpA isn’t shopping for major acquisitions right now, chief executive officer Andrea Guerra said, as the Italian fashion house wants to stay focused on developing its own brands.

“Our homework today is to nurture our brands,” Guerra said at an event in Venice Monday. On the mergers and acquisitions front, “I have no news for you,” he said.

Speculation has swirled throughout the fashion sector since design icon Giorgio Armani hinted recently at possible changes for his company once he’s no longer in charge. Armani, who’s nearing his 90th birthday, told Bloomberg last month that he wouldn’t rule out a merger after he exits the scene.

His comments have shaken the Italian luxury industry, where many companies are still independent and family-controlled, including Salvatore Ferragamo SpA, Moncler SpA and Ermenegildo Zegna NV. All of them lack the scale of powerful, acquisitive French rivals LVMH Moet Hennessy Louis Vuitton SE and Kering SA.

Despite ruling out any major moves for his group in the short term, Guerra said he expects more M&A activity in the industry over the next few years. “In two, three, five years time a lot of things will happen, consolidation will happen,” Guerra said, without elaborating on possible players.

Prada in recent years has bought a stake in tannery Superior and teamed up to invest with Zegna in Italian cashmere maker Filati Biagioli Modesto SpA and in knitwear specialist Luigi Fedeli e Figlio Srl. Guerra said earlier this month that Prada remains committed to investing in Italy, and that the strategy of grouping together smaller suppliers could help it build scale and add stability.

By Flavia Rotondi

Learn more:

Prada Heir Says the Group Is Open to More M&A

“We have been and will always be open to considering opportunities,” Lorenzo Bertelli told reporters Tuesday at the opening of a knitwear factory in Torgiano, Italy.

If there’s one product that whips Sophie Shab’s followers into a frenzy, it’s blush.

“The comments are always like, ‘Oh my god I have so many blushes, but I need to try that,’” said Shab, who has 1.7 million Instagram followers under the moniker Trendmood.

Case in point: a post revealing Nyx Cosmetics’ Butter Melt Blush received 26,700 likes, while one on Giorgio Armani Luminous Silk Cheek Tint received 16,500. A bronzer from the same brand collected about half as many.

Shab said every time she thinks her followers will be fatigued, a new innovation in formula or clever marketing will pull them back. “I [know I] have enough blushes… but then it’s like, ‘oh, that’s something I haven’t seen before,’” she said.

Blush, especially in its traditional powder form, certainly wasn’t always considered cool. As contouring and highlighting took over as the dominant complexion trends, blush became considered a little matronly or outdated, while other consumers eschewed it for fear of looking clownish. Now, TikTok trends like “tomato girl” and “strawberry girl” makeup have given the category a boost, as well as new application techniques like blush “draping,” “sandwiching” or “glazing.”

But even for consumers who don’t take their cues from flash-in-the-pan fads, the category is having a renaissance. In the US, blush sales in the prestige market were up 60 percent in 2023 to $427 million, while unit sales increased 58 percent, according to market research firm Circana. Mascara sales – a much more seemingly quotidian product – generated $595 million, only a 6 percent increase.

Brands are rushing to add more blush options to their line-ups, with new formats such as gel, or liquid helping to entice consumers to add another to their routine. A hit blush can be a real boon: for premium cosmetics line Saie, sales of its Dew Blush are some 30 percent of its overall sales, said Lucia Perdomo-Ruehlemann, company president.

To turn a moment into momentum, brands need to be as strategic with their formulas and delivery systems as they are with their marketing.

Fresh Formulas

The sheer variety in the category is part of its renewed appeal – the more options offered, the more consumers that can be reached.

“There’s been an explosion in technology, in innovation and in format,” said Cierra Sherwin, a beauty product developer who previously helped create Glossier’s Cloud Paint blush.

While blush historically was offered as a singular powder block, today there’s liquid (Rare Beauty, Saie, Glossier), cream (Basma Beauty, Makeup by Mario) and more esoteric options, like Milk Makeup’s Cooling Water Jelly Tint. Displayed in a wobbly stick format, it gives a sheer wash of colour. Then there’s skincare-blush hybrids, like Drunk Elephant O-Bloos Rosi Drops, which claims to offer serum-like benefits along with cosmetic ones. Even brands that make powder options are supersizing them: One/Size’s comes with three shades in one palette, Patrick Ta’s contains powder and cream.

A buzzy new formulation or delivery system is likely to generate attention, said Shab – Milk Makeup’s caused so much of a frenzy, the brand had to dissuade people from eating it – but it can also make people feel more at ease with trying the product out.

The proliferation of gel, cream or liquid blushes takes away some of what Perdomo-Ruehlemann referred to as the intimidation factor. These products tend to apply in a more sheer fashion, and even if they don’t – Rare Beauty’s initially went viral for being so pigmented – they’re easy to blend, making it easier for consumers to get the desired look.

“In terms of the actual formulation, [blush] is something where it’s kind of hard to mess up,” said Sherwin.

Other trending qualities come down to the effect on the skin. Dior Rosy Glow Blush became an “it” product thanks to a formula the brand says contains an adaptive complex that allows the finished look to be bespoke to one’s skin tone.

All Aglow

Healthy-looking skin being in vogue certainly helps.

See the popularity of tinted lip balms, freckle pencils and fluffed-up brows. It also chimes with the ongoing rise of wellness practices which encourage or entice with a vision of a more glowing, calming, and perked-up version of oneself. A perky, just-pinched glow is a logical extension of wellness practices.

“I was one of those people who said publicly that I didn’t like blush, and I used to be all about the contour,” said Jamie Genevieve, an influencer, makeup artist and founder of cosmetics line Vieve. “But as I started to experiment with blush, I saw the difference it makes.”

That doesn’t mean that blush is always being used to create a natural-looking effect, however. Trends like the aforementioned glazed blush or blush sandwich use multiple products with bold pigments, and are designed to turn heads. Sherwin said some trends see the blush applied from the centre of the cheek, almost up to the brow bone. TikTok personalities like the model Adison Justis frequently use three or more blushers per look, applying them across the nose and on parts of the chin as well as on the cheeks.

“Some blush trends I’m seeing from Korea, they apply the blush almost under the eye to give a kind of doll-like effect,” said Sherwin.

There’s also a normalisation of professional makeup artist techniques. The idea that cream or liquid products should be “set” with powder has become more mainstream thanks to tutorials on social media from professionals. Consumers are thus more likely to buy two products for one job.

Pick Me Up

Offering immediate, visible results on the skin with a low barrier to entry when it comes to application makes blush a home run, said Genevieve and Sherwin. “Everyone is still working on Zoom all day long,” said Sherwin, describing it as an instant tool. The omnipresence of one’s reflection combined with the flatness video cameras create makes a lick of blush a quick and easy approach.

Skincare ingredients, like the Vitamin C and E found in Vieve’s Sunset Blush Balm, or the omega fatty acids in Drunk Elephant’s, also give a sense of killing two birds with one stone, appealing to time-pressed consumers.

Blush represents a big opportunity for beauty brands, but competition is stiff and expectations are high. Consumers expect formulas to be exceptionally high quality, both long-lasting and blendable. Considering that blushes will likely be layered with other complexion products, the formulas need to be carefully calibrated to make sure they can withstand picking and mixing.

Shade selection matters, too – Genevieve said while not as complex as developing foundation shades, brands need to carefully test to make sure shades are as flattering as possible for a wide range of skin tones, and truly add that “pop” of colour.

For Shab’s followers, they’re looking for more than just skin deep. “It’s that combination of what your eyes see, but then also, that formula you know is making it perfect.”

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