Hims & Hers: Bridging Gaps in Telehealth

In early 2016, Andrew Dudum founded Hims & Hers to help bridge the gap between stigmatized intimate health issues and professional healthcare. By improving access through a fully digital platform, the company he has built has grown into a pioneer in the fast-growing telehealth industry. Let's dive straight into the story of Hims & Hers – from skincare to weight loss.

• Improving access: Hims & Hers targets millennials, and is primarily focused on addressing stigmatized health issues.

• International expansion: In 2024, Hims & Hers has begun building the platform to support its expansion beyond the U.S. market.

• Compounded GLP-1 medication: As of 2024, the company offers compounded GLP-1 medications containing semaglutide, the active ingredient in weight-loss treatment Ozempic and Wegovy.

The story of the fast-growing telehealth company Hims & Hers began less than a decade ago. Before its inception, Andrew Dudum, its CEO and founder, worked at Atomic Labs. Atomic Labs was (and still is) a company builder and venture capital fund under one roof.

In Atomic's innovative and entrepreneurial environment, Dudum got the idea to start his own business. For several years, he had observed a distinct gap between men and access to stigmatized healthcare. Dudum himself was lucky to have a solid hairline and was a long-time user of skincare products, but he had colleagues and friends who were not as fortunate or informed.

Believing he could help destigmatize such issues by improving access to medications and professional care, Dudum launched his company in 2016 under the name “Hims.” Initially focused on men's products and services, the plan was always to add women's products – conveniently adding “& Hers” as the company expanded its business. Its early offering was centered around prescription drugs to treat intimate issues such as erectile dysfunction and hair loss.

Fast forward some years, and the company has expanded and evolved into Hims & Hers and is now offering products for everyone, not exclusively just for men. The keywords in its business model are the words: improving access, which is achieved through its completely digital approach.

By only offering its services online, the company primarily targets individuals with sensitive issues – or simply seeking the convenience of receiving help within just a few clicks. While there are products for adults of all ages on offer, the primary customer group is millennials.

The Hims part of the business still mainly includes erectile dysfunction and hair loss, but also dermatology, supplements, and more. Hers provides skincare products, cosmetics, and birth control, to name a few. Beyond these products, Hims & Hers has introduced therapy for mental health issues, provided COVID-19 tests, and most recently weight loss treatments, a space they've (for good reason) identified as having significant growth potential.

In 2024, Hims & Hers announced that it would start providing access to a compounded GLP-1 medication. Compounded medications are customized treatments prepared by licensed pharmacists rather than mass-manufactured. These medications are often used to address shortages or meet specific patient needs.

The compounded GLP-1 offered by Hims & Hers contains semaglutide, the active ingredient in Novo Nordisk's weight-loss medications Ozempic and Wegovy. While the compounded version may not have the same level of consistency and extensive clinical trial validation as the FDA-approved products, it is regulated and prepared by licensed professionals and is generally cheaper.

Hims & Hers' injectable GLP-1 medication is priced starting at $199 per month, compared to branded products like Novo Nordisk's Wegovy, which costs well over $1,000 per month.

Amid the shortages in Wegovy medications, and shortages in Eli Lilly's Zepbound, Hims & Hers quickly gained market share in one of the most in-demand market segments of recent years. For 2025, Hims & Hers also plans to add a generic version of Novo Nordisk's diabetes drug liraglutide which has seen its patent expire.

Since its founding in 2016, Hims & Hers has seen significant growth in both its offerings and financial performance. In 2021, Hims & Hers went public through a merger with a Special Purpose Acquisition Company (SPAC) – led by legendary Howard Marks – at a valuation of $1.6 billion. By 2024, its valuation had grown to approximately $4 billion.

The telehealth company has grown its annual revenue from $148 million in 2020 to an expected $1.465 billion in 2024 – representing a tenfold increase since going public. Its services are available across all 50 states.

While Hims & Hers has yet to replicate its U.S. success in international markets, it began its expansion in 2021 with the launch of its brand in the UK. The next significant step came in early 2024 with the appointment of Anja Manuel, a seasoned expert in international markets and regulatory affairs, to its board of directors. In announcing the appointment, CEO Andrew Dudum reaffirmed the company’s global ambitions, stating:

Hims & Hers has quickly established itself as a prominent name in a niche in U.S. healthcare. By strategically targeting millennials as its primary customer group and positioning itself as a telehealth company, it has achieved remarkable growth in less than a decade. Operating in a highly regulated and increasingly competitive market – highlighted by Amazon's recent entry – Hims & Hers must continue its proven strategy of destigmatizing health issues to maintain its momentum in the evolving industry.