Hims, a heavily branded online pharmacy with a limited range of products, began trading as a public company on Thursday at $17.08 per share. Its price dropped 7% over the course of the day. The company went public through a merger with special purpose acquisition company (SPAC) Oaktree Acquisition Corp, which closed on Wednesday. The deal valued Hims at $1.6 billion.
The IPO is notable because it suggests that Hims and its model of healthcare are here to stay. The company has made steady progress since its inception four years ago. It now has nearly 300,000 subscribing customers across its two brands: Hims (for men) and Hers (for women). For all of 2020, the company expects to take a loss of $20 million on revenue of $138 million. Next year, it plans to grow revenue 30%.
Hims started as a wellness brand, but has grown beyond that into full-on primary care. It now has great potential to reach the surprising number of people who don’t already have a regular doctor. However, it’s…
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Source : fastcompany.com
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