The popular telemedicine and wellness company Hims & Hers faced a slow market entry this week after hitting the New York Stock Exchange. The company started trading on Thursday under the ticker symbol NYSE: HIMS after completing a reverse merger with Oaktree Acquisition Corp. But while shares in the company quickly slipped, experts are hopeful that the trendy healthcare company will see success long-term.
Hims & Hers aims to make wellness and healthcare easily accessible, and offers a wide range of services from bespoke vitamins to telemedicine through its website. The company offers primary care services online, and allows users to consult a physician through its website at a lower price than most in-patient services are throughout the United States. Primary care visits start at around $39, and offer a range of special services depending on your healthcare needs.
For women, the company offers options for birth control as well, making it affordable and accessible to get healthcare and sexual wellness products. For COVID-19, the company even offers home saliva tests. Providers that work with the company can prescribe medicine that can be picked up at a local pharmacy of the patients’ choice. Healthcare visits with primary physicians are not covered by insurance, but prescriptions might be depending on a patients’ individual plan. The company also offers mental healthcare, and provides a variety of resources to help patients get the help they need for a variety of issues.
Hims & Hers completed a reverse merger to enter the New York Stock Exchange this week. A reverse merger is when a company that does not trade publicly acquires enough shares in a publicly traded company to own it entirely. Compared to a traditional Initial Public Offering, this allows a company to merely take over an existing blank check company known as a special purpose acquisition company, also often referred to as an SPAC.
An SPAC allows a company to enter the stock market without having to work with bankers in valuing the company first. There are risks in filing for an IPO, especially if a company seeks a valuation far greater than it’s worth—something that the co-working startup WeWork faced just a couple of years ago.
Telemedicine is becoming an increasingly popular sector in the startup world, especially amid the COVID-19 pandemic. Ro, another telemedicine company, recently earned $200 million in a Series C funding round that brought its total valuation up to $1.5 billion. The company has yet to file for an IPO, and announced after its latest funding round that it will focus on building its best product.
Both Ro and Hims & Hers are clearly the future of the healthcare industry for cash-strapped millennials and gen z-ers that are in desperate need of accessible healthcare. Telemedicine companies have seen significant growth amid the COVID-19 pandemic, but it’s unlikely that enthusiasm for the product will slow even as things go back to normal in the coming years.