HIMS' Buyouts Fuel International Expansion & Digital Health Innovation

The renowned health and wellness platform, Hims & Hers Health, Inc. HIMS, has been leveraging existing capabilities and continuing to expand capabilities to penetrate new sales channels and further improve operations. Per management, HIMS’ model has been developed to be scalable and applicable across new markets and languages. The company expanded into the U.K. in early 2021, and in June 2021, it completed the acquisition of U.K.-based Honest Health Limited, which is now Hims & Hers UK Limited (“HHL”). The acquisition of HHL has allowed Hims & Hers to expand its operations in the U.K. further. To further solidify its foothold in the U.K. and expand into the European market, the company announced its agreement to acquire ZAVA, a digital health platform in Europe, on Tuesday. The deal, which marks a significant step toward its global expansion, will likely expand HIMS’ footprint in the U.K. and will officially launch the company into Germany, France and Ireland, with more markets anticipated soon.

Hims & Hers is also planning to introduce a new, personalized dimension of digital health in Europe. Through this, the company aims to provide individuals with access to care tailored to their specific needs and goals across dermatology, weight loss, sexual health and mental health. To ensure a localized experience, this expansion is also expected to include access to British, German and French healthcare providers in local languages. Hims & Hers expects to share more about the offerings and their rollout in the coming months.

Few other notable buyouts by Hims & Hers to enhance its offerings and customer service include a peptide manufacturing facility and certain related assets from C S Bio, Co. (which will likely allow it to expand its supply chain capabilities in the future) and the Sigmund NJ, LLC, marketed as Trybe Labs, a lab testing services business (which is expected to enable HIMS to add lab testing capabilities to its platform in the future).

Digital Health Players TDOC & AMWL Also Growing via Buyouts

In April, Teladoc Health, Inc. TDOC acquired UpLift. Per management, the acquisition supports Teladoc Health’s strategy to enhance its position in virtual mental health, including the ability for consumers served by its BetterHelp segment to access benefits coverage for mental health services. In February, Teladoc Health signed a definitive agreement to acquire Catapult Health. TDOC plans to leverage Catapult Health’s innovative approach to patient-centric at-home diagnostic testing and its high-touch engagement and clinical support model to complement its suite of integrated solutions.

American Well Corporation AMWL, popularly known as Amwell, has expanded and intends to continue to expand its enterprise platform and software as a service through research and development as well as the pursuit of selective acquisitions. Amwell’s acquisitions of SilverCloud and Conversa add proven longitudinal care and behavioral healthcare capabilities to its digital care enablement platform. In January, AMWL announced that Vida Health, a virtual cardiometabolic care provider, is now part of the clinical programs portfolio on the Amwell platform.

HIMS' Price Performance, Valuation and Estimates

Shares of Hims & Hers have surged 121.7% year to date compared with the industry’s gain of 22.9%.

HIMS’ forward 12-month P/S of 4.7X is lower than the industry’s average of 6X. It carries a Value Score of C.

The Zacks Consensus Estimate for HIMS’ 2025 earnings per share suggests a 170.4% improvement from 2024.

Hims & Hers stock currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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