Investing.com -- Hims & Hers Chief Executive Andrew Dudum defended the telehealth company against a Federal Trade Commission lawsuit concerning its data sharing practices in an interview that aired Tuesday on CNBC's "Squawk Box."

Dudum said the allegations resulted from a misunderstanding of how the company is changing healthcare. "I can't say much other than the fact that, you know when you're changing the fundamental understanding of how a traditional system like healthcare works, and you're rebuilding it in the digital ecosystem," he told Andrew Ross Sorkin. "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. And I think ultimately they wanted more of a headline than than a real agreement here."

In July, the FTC, Los Angeles County and Utah filed a lawsuit against Hims & Hers. The lawsuit accused the company of sharing user health information with advertisers including Meta and Snap, charging for prescriptions before customers spoke with healthcare providers and making subscription cancellations difficult.

Dudum said the company's business model focuses on expanding access to care. "We are active disruptors. 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," he said.

The CEO also discussed the company's shift from compounded to branded GLP-1 drugs. During recent shortages of obesity and weight loss medications, the company sold copycat versions at lower prices. After supply returned, Novo Nordisk sued Hims & Hers for patent infringement. In March, the Danish drugmaker dropped its lawsuit and the telehealth company agreed to sell Novo's branded drugs on its platform.

"Ultimately, we will always apply pressure to the system if we believe it's best for the consumer. And when we were compounding the GLP-1s, there was no affordable access to these therapeutics," Dudum said. "Now, what that did in the ecosystem is it showed consumers and the drug companies these medications can be brought to consumers at a price that everyone can afford."

Dudum said he expects prices for cash-paying patients to drop to $40 to $50 per month from approximately $150 to $200 currently, depending on the medication form.

The CEO said artificial intelligence will transform healthcare and the company is increasing investments to become "AI native." Hims & Hers is moving away from third-party AI agents to build technology internally.

"The core foundational models, independent of a closed loop data set, are not that valuable. That's my honest opinion," Dudum said. "The closed loop data that you have within a healthcare system like Hims & Hers, that is the asset."