Hims Skyrockets on IBD 50 Following Exciting New Launch Beyond Obesity Sector
Hims & Hers Health is making headlines with its recent strategic developments. The telehealth company announced the launch of a menopause care program, boosting its stock prices significantly.
Menopause Care Program Launch
The company’s move into menopause care follows the release of a testosterone replacement program unveiled last month. According to analyst Michael Cherny from Leerink Partners, this expansion is a logical extension of the Hers brand and the company’s recent entry into the hormone replacement therapy market.
Financial Projections and Stock Performance
This strategic expansion is expected to increase the Hers brand’s revenues to over $1 billion by 2026. Following the announcement, Hims stock surged by 7.1%, reaching 57.87 in afternoon trading. The stock currently ranks 17th on the IBD 50 list of elite growth stocks. It is nearing a buy point of 60.55, based on MarketSurge chart analysis.
Transition Beyond Weight Loss
- Hims & Hers is known for weight-loss products, including semaglutide and the branded Zepbound.
- Semaglutide is key to Novo Nordisk’s Wegovy, and Zepbound is from Eli Lilly.
Expanding into menopause care illustrates the platform’s growth beyond weight loss, according to Cherny. The company will provide personalized plans for perimenopause and menopause treatments using estradiol and progesterone in various forms such as pills and patches.
Competitive Market
The menopause sector is competitive, with factors such as personalization, cost, and insurance coverage impacting growth. The addition of menopause services is expected to help the Hers business exceed $1 billion in sales this year. Currently, over half a million subscribers use Hers services, which include weight loss and hair treatments.
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