Direct-to-consumer virtual care company Hims & Hers Health is looking to expand its skincare services, and has announced plans to buy teledermatology platform Apostrophe for an undisclosed sum.
This comes just weeks after the company revealed that it was acquiring British telehealth company Honest Health with an eye to continue its U.K. expansion and enter the E.U. market.
Apostrophe specializes in the skincare space and is able to offer its patients topical and oral medications. The model is similar to Hims & Hers’ virtual care offering. Patients asynchronously answer questions about their condition and health history, and upload photos of their skin.
A dermatologist is then able to assess the information and prescribe an appropriate medication. Prescriptions are filled by Apostrophe’s affiliated pharmacy. Thus far the company can fulfill orders in 29 states.
According to Hims & Hers, the deal is expected to close in the third quarter of 2021.
WHY IT MATTERS
Hims & Hers has had offerings in the dermatology space for some time. As of today, it offers anti-aging and wrinkle creams, everyday skincare products and acne cream. Apostrophe is heavily focused on the acne space and can offer oral medications for the condition, which would be an add-on to Hims & Hers current offerings.
“Personalized dermatology has become increasingly of interest to our consumers,” Andrew Dudum, CEO and cofounder of Hims & Hers, said in a statement. “In the seven years since its founding, Apostrophe has built a brand that, like Hims & Hers, has attracted and heavily engaged GenZ and Millennial consumers.
“With this investment, we will accelerate our dermatology business, offering highly personalized dermatology treatments at scale. We are excited to welcome the Apostrophe team to the Hims & Hers family.”
In May of 2020 Hims & Hers main competitor, Ro announced its plans to enter the dermatology space. The company unveiled its new prescription products that include eczema treatment, medical-grade antiperspirant and prescription dandruff shampoo.
THE LARGER TREND
Founded in 2017 Hims & Hers began as a men’s sexual health and wellbeing startup, but has quickly expanded to include women’s health, mental health care, COVID-19 testing, and other care areas.
By 2019 the company was valued at $1 billion. Last October the company went public through a special purpose acquisition company (SPAC) merger with Oaktree Capital Management.