Shares of Hims & Hers (NYSE: HIMS) fell as much as 8% on Tuesday and closed at their low for the day after news broke that Eli Lilly (NYSE: LLY) lowered the price for a key weight loss drug.

The big news on Tuesday was an announcement that Eli Lilly will sell the weight loss drug Zepbound through its direct-to-consumer website at a 50% discount to the previous price. A 2.5 milligram single-dose vial will cost $399 for a month's supply, while a 5 milligram dose will be $549 per month.

This is the first name-brand GLP-1 weight loss treatment to be this inexpensive without using the shortage exemption Hims & Hers uses to sell a compounded version of the drugs. Today, investors think that's a threat to a key growth avenue for the company.

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Source Fool.com