First quarter revenues were US$586mil, the telehealth company said. — Bloomberg
NEW YORK: Hims & Hers Health Inc has reiterated its 2025 revenue forecast after posting better-than-expected sales for the first quarter.
This raised questions about the future as it shifted from making copycat weight-loss drugs to selling discounted versions of Novo Nordisk A/S’ blockbuster Wegovy.
Hims’ business got a boost when branded weight-loss drugs were in short supply and a regulatory loophole allowed it to sell less expensive compounded versions of drugs like semaglutide, a chemical name for Wegovy.
Those shortages have since been resolved and now the telehealth company is finding a new lane by also selling branded drugs at a discount.
First quarter revenues were US$586mil, the telehealth company said on Monday in a statement, above the US$538mil average estimate from analysts. It also forecast second quarter sales of US$530mil to US$550mil, less than expected.
That’s due in part to lower weight-loss drug sales in the three months ended in June, Hims officials said.
“We expect to complete the transition of subscribers previously on commercially available doses of semaglutide to either appropriate alternatives on our platform or other platforms entirely by the end of the second quarter,” chief financial officer Yemi Okupe told investors on a call.
“That’s expected to result in a revenue drop compared to previous quarters,” Okupe said.
The San Francisco-based company reaffirmed its full-year forecast of US$2.3bil to US$2.4bil in sales, while raising its adjusted earnings expectations to a range of US$295mil to US$335mil.
Hims shares fell 3% in late trading. They had gained 73% since the start of the year through Monday’s close.
The company is setting a sales target of at least US$6.5bil in 2030, chief executive officer Andrew Dudum said.
“The figure is a reflection, frankly, of our confidence in where we sit today, that there are a wide range of growth levers, a wide range of evolving dimensions under the hood, and now we’re just scratching the surface,” he said in an interview.
Subscribers grew to 2.4 million, an increase of 38% year-on-year, according to the statement.
In the past few years, Hims has gone from being a startup best known for selling cheap Viagra into a US$9bil telehealth powerhouse.
The company’s stock more than tripled since it began selling cheaper, compounded weight-loss drugs last May when brand-name shots were in short supply.
It’s also expanded recently by acquiring a blood-testing company and a manufacturing plant.
Now that drugmakers are able to make enough Wegovy and Zepbound to meet demand, US regulators have said compounding pharmacies must stop mass producing copies.
Last quarter, Hims said it would stop selling all “commercially available” doses of the medication.
Going forward, it plans to sell “personalised” doses of compounded Wegovy to patients that might not be able to tolerate the brand-name medication. However, that option will be “limited,” Dudum told investors on Monday. — Bloomberg
