Hims & Hers CEO Defends Company Against FTC Lawsuit

In a recent exclusive interview with CNBC, Hims & Hers CEO Andrew Dudum defended the company against a Federal Trade Commission (FTC) lawsuit over its data sharing and subscription practices. Dudum stated that the allegations stem from a misunderstanding of how the company operates, particularly in regards to altering the traditional healthcare system and rebuilding it within the digital ecosystem.

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According to Dudum, the company is working to increase access to care, and its business model is built around this goal. ‘We are active disruptors,’ he said. ‘We take that head on, and we’re willing to do it. But it is always when we believe that it’s in the best interest of people and their access.’

Hims & Hers’ Business Model and FTC Lawsuit

The FTC, Los Angeles County, and Utah filed a lawsuit against Hims & Hers in July, accusing the company of sharing user health information with advertisers like Meta and Snap, charging for prescriptions before customers have spoken with a healthcare provider, and making it difficult to cancel subscriptions. Dudum defended the company’s practices, stating that they are necessary to increase access to care.

He also emphasized the company’s efforts to work with the FTC and other regulatory bodies to ensure compliance with data sharing and subscription practices. ‘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,’ he said.

Impact of Hims & Hers on Healthcare Prices

Dudum also discussed the company’s role in bringing down prices for certain medications, particularly GLP-1 drugs used to treat obesity and weight loss. When supply of these medications was in shortage, Hims & Hers could legally sell copycat versions at a discount. After supply recovered, Novo Nordisk sued Hims & Hers for patent infringement, but later dropped the suit.

Following the settlement, Novo and its rival Eli Lilly began to cut the prices of their GLP-1 drugs for patients paying out of pocket. Dudum believes that this trend will continue, with prices for cash-paying patients dropping to $40 to $50 per month from the current $150 to $200.

Hims & Hers’ AI Development and Future Plans

Dudum also discussed the company’s plans to develop its own artificial intelligence (AI) agents, moving away from third-party agents. He stated that the company is increasing its investments in AI and plans to become ‘AI native.’

According to Dudum, the core foundational models of AI are not as valuable as closed-loop data sets within a healthcare system like Hims & Hers. ‘The closed loop data that you have within a healthcare system like Hims & Hers, that is the asset,’ he said.

By developing its own AI agents, Hims & Hers aims to increase its capabilities and improve patient care. The company’s focus on AI development and its commitment to increasing access to care position it as a leader in the healthcare industry.