Yesterday, as my wife and I were doing a biweekly Target-run, I was attracted to an end-cap display, looking very much like a new Target private label brand. Its simplicity, and elegantly designed packaging, great presentation, along with the slightly cheeky name Hims & Hers looked very on-brand for Target. Make no mistake, it is not theirs.
According to Hims representatives, the corporate parent “Our products can be found in Target stores across the nation and on Target.com.” And after a little more digging I unmasked an interesting, even groundbreaking story, that had eluded me up to that moment.
Launched in November of 2017, the brand founded by Andrew Dudum goes where few brands have dared. It combines both branded products, and telehealth services focused on a wide range both men’s and women’s health in areas of hair loss, erectile dysfunction, skincare and birth control. And, if all goes according to plan, they stand to be rewarded through a “blank check” IPO, based on its current estimated $1.2 billion valuation.
I was able to reach out to Hilary Coles, Co-Founder and VP of Merchandising for Hims & Hers, via their PR firm. In speaking about the brand’s prime objectives, she stated via e-mail “We initially founded Hims & Hers to help consumers access affordable, convenient care for conditions that can be challenging to talk about due to stigma, like hair loss and sexual health. We’ve found that today’s consumers appreciate honest conversations, destigmatization and easy access to products and services that may be helpful for a variety of issues they face.”
A Differentiated Brand
The brand offers access to experienced, licensed medical professionals who can both consult and treat a wide range of medical conditions. Last year the brand claimed more than 1 million virtual patient appointments. Additionally, since late-March Hims & Hers expanded its offerings to include COVID-19 screenings and sessions dealing with anxiety and depression, brought on by the coronavirus pandemic.
Prior to COVID, telehealth was on the fringe of the healthcare industry, with about $3 billion in 2019 spending. Analysts now predict that virtual visits could reach $250 billion in 2020. That is about 20 percent of annual Medicare, Medicaid and insurers expenditures for outpatient, office and home visits by health professionals.
IPO Plans
In July, it was reported that the San Francisco-based Hims was looking for a special purpose acquisition company (SPAC) to take the company public. SPACs are often referred to as “blank-check” IPO’s, which is sort of a third-party entity that goes public and raises capitol, then acquires the private company. They hired LionTree Advisors LLC to do the negotiating. Interestingly, among the start-up investors, according to the New York Post, are none other than Jennifer Lopez and her husband Alex Rodriguez.
Source: Forbes – Hims & Hers – Featured At Target, Goes Where Few Brands Have Dared