Hims & Hers Denies Privacy Allegations, Commits to Expanding Patient Access

Hims & Hers Health Inc. CEO Andrew Dudum defended the telehealth company as it contends with a U.S. Federal Trade Commission lawsuit over data privacy and advertising practices.

The executive argued in a CNBC interview that regulators fundamentally misunderstand how his company is modernizing the healthcare landscape.

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In July, the FTC filed a major lawsuit against Hims & Hers, alleging the company illegally shared sensitive customer health information with online advertisers and employed deceptive billing tactics.

The FTC claimed sensitive medical data was improperly transferred to digital advertising companies, specifically naming Meta Platforms Inc. and Snap Inc.

"All I can say is, when you change the fundamental understanding of how a legacy system operates, and rebuild it in a digital ecosystem," he told Andrew Ross Sorkin on CNBC's "Squawk Box."

"I think it takes time for people to understand how to do it the right way, and we've been working with the FTC for years to explain this to them. I think ultimately what they want is a headline rather than a real agreement."

Shift Toward Branded Weight-Loss Drugs

The CEO also discussed the platform's transition from compounded weight-loss medications to branded GLP-1 treatments. During a recent industry-wide shortage, the company legally offered discounted generic versions of the high-demand obesity drugs.

Once market supply levels recovered, Novo Nordisk A/S filed a patent infringement lawsuit against the platform. The Danish pharmaceutical giant ultimately withdrew its legal action in March, after the telehealth company agreed to directly offer Novo's branded drugs to users.

Going forward, Dudum expects a significant drop in out-of-pocket costs for self-pay patients. He projects monthly medication prices to fall to the $40-$50 range, down from roughly $150-$200 currently, depending on the specific drug form.

Heavy Investment in AI

Additionally, the CEO envisions artificial intelligence fundamentally transforming the medical sector. He stated the company is actively increasing investment to become an "AI-native" organization.

Rather than relying on external vendors, the company is abandoning third-party AI agents and building all AI capabilities entirely in-house.

HIMS stock price action: Hims & Hers Health shares rose 8% to $29.58 at the time of Wednesday's data release.