Digital health startup Hims & Hers this week made its debut on the New York Stock Exchange after completing a reverse merger with blank-check company Oaktree Acquisition Corp., valuing the four-year-old company at $1.6 billion.
The deal was done through the special purpose acquisition company (SPAC) route, an increasingly popular method of going public since it tends to give the founders more control and the company more money quicker (LA-based electric car maker Fisker made a similar move last November).
Launched in 2017, Hims was initially an online resource that helped men treat issues like hair loss and erectile dysfunction through telehealth consultations and discreet prescription deliveries. Since then, it has expanded into women’s health, adding Hers to its name, and developed its own electronic medical record and online pharmacy as well.
For now, the company runs entirely on a cash-only basis, which means it doesn’t accept insurance and simply charges users $20-30 a month for 24/7 access to its telehealth services and medication subscriptions. However, co-founder and CEO Andrew Dudum told Forbes that the company plans to enter into partnerships with self-insured employers and health systems, as well as actual insurers, soon.
This latest news comes amid a time of steady growth for Hims & Hers. Back in October, the company shared it had experienced year-over-year Q3 revenue growth of 91 percent and an increase in gross margins, net orders and average order value. This kind of growth has been experienced by digital health companies around the country amid the pandemic, with companies like Amwell, Teladoc and Ro making big moves of their own last year.
As for Hims & Hers, Dudum says the “tremendous progress” in 2020 and this push to go public brings the company one step closer to becoming the “front door to the healthcare system.”
“Today’s milestone brings us even closer to making modern, affordable care accessible to more Americans,” Dudum said in a statement. “By providing seamless patient experience combined with proprietary technology, we intend to transform many of healthcare’s most important categories, including primary care and mental health.”
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