In the competitive landscape of weight-loss solutions, Hims & Hers Health (HIMS) is challenging the traditional players with innovative strategies and partnerships. Recently, the company has forged a significant alliance with Novo Nordisk, a heavyweight in the obesity treatment space. This partnership allows Hims to offer a subscription service that combines access to its telehealth platform with Novo’s prominent weight-loss medication, Wegovy, all for a monthly fee of $599.
Market analysts are taking notice; for instance, Needham analyst Ryan MacDonald describes the arrangement as “groundbreaking,” suggesting it alleviates concerns about HIMS’ revenue projections. The partnership may also enhance Hims’ ability to achieve its anticipated $725 million in weight-loss revenue by 2025, positioning the company favorably in an evolving market landscape.
Founded in 2017, Hims & Hers Health began its journey by addressing sexual health and dermatology needs. Over the years, the company expanded its offerings to include mental health services and, more recently, weight-loss medications. This diversification has led to remarkable revenue growth—rising from $149 million in 2020 to an impressive $1.48 billion in 2024, showcasing the company’s ability to adapt to current health trends.
In the first quarter of this year, Hims reported a staggering 111% increase in sales, totaling $586 million and exceeding expectations. The company now serves 2.4 million subscribers, marking a 38% year-on-year growth. As subscriber spending rises—which averaged $84 per month compared to $55 earlier—Hims plans to broaden its portfolio with products targeting menopause and testosterone.
The partnership with Novo Nordisk is not Hims’ only strategic move; the company also markets Eli Lilly’s obesity treatments and offers personalized options for patients with type 2 diabetes. While specific revenue streams are not disclosed, Hims claims a notable market share in four specialties: dermatology, sexual health, weight loss, and mental health.
Hims’ recent stock performance reflects this momentum. Shares surged by 150% this year, propelled by excitement around its weight-loss offerings. Though the company’s second-quarter sales forecast fell short of analyst expectations, it still enjoyed a significant rebound in stock price, indicating investor confidence.
Looking ahead, Hims is set on expanding its horizons. Analysts project substantial growth, with sales estimates reaching around $6.5 billion by 2030. To facilitate this expansion, Hims has announced plans to acquire the European telehealth provider ZAVA, which would enhance its operations in key markets like Germany and France, and introduce it to Ireland. This move is expected to broaden Hims’ total addressable market significantly.
As Hims navigates the complexities of international expansion, it faces the question of how effectively it can replicate its successful model across different healthcare ecosystems. While ZAVA’s current 2023 revenue stands at just $25 million, the focus may turn towards strategic growth rather than immediate revenue gain.
Hims & Hers Health may still have room for growth within its existing markets, as it reports only single-digit penetration in specialized areas. This provides a robust opportunity to leverage its infrastructure while leveraging partnerships to enhance its service offerings. Investors will be keen to see how the company builds on its recent successes and addresses the challenges that lie ahead.
