Two weeks after its Novo Nordisk meltdown, it was back to business as usual for Hims & Hers (HIMS), which just rolled out its first out-of-home gummy ads in New York City, this time targeting hair loss treatment.
Hims is the first company to launch a clinically proven Minoxidil Gummy - a prescription hair growth treatment designed specifically for women.
New Yorkers will spot murals featuring the phrase “Cute and clinical,” directing them to learn more about the new Hers treatment.
While hair loss products are usually marketed to men, millions of women also experience thinning hair.
The National Library of Medicine estimates that 30 million women in the U.S. are affected by androgenetic alopecia, a common condition that causes shrinking hair follicles and hair loss.
Hims & Hers has focused on this underserved market for years, noting that 76% of women they surveyed said hair loss negatively impacts their self-esteem.
The new Minoxidil Gummy offers a more convenient alternative — and potentially better treatment adherence — for women who prefer not to deal with messy topical solutions.
For Hims & Hers, being first to market with a gummy hair loss treatment could drive meaningful membership growth - a timely boost after its very public fallout with Novo Nordisk over its flagship weight-loss offering.
Hims & Hers after the crash
Shares of Hims & Hers plunged nearly 35% on June 23 after Novo Nordisk abruptly ended its Wegovy partnership, citing allegations that Hims engaged in deceptive marketing practices.
Although HIMS stock has since stabilized, it remains down about 25% from its pre-breakup highs.
HIMS closed the holiday-shortened week at $47.98 - still up an impressive 90% year-to-date and 130% over the past 12 months.
The stock currently trades at about 70 times earnings, with a market capitalization of $10.7 billion.
When it comes to Hims’ underlying business, not much has changed.
On July 3, company tracker Hims House reported that the telehealth platform wrapped up its strongest four-week stretch since late February, based on credit card transactions, website traffic, app rankings, and other key metrics.
The positive momentum follows an explosive first quarter, where Hims generated $586 million in revenue and $49.5 million in net income.
The company also expanded its footprint by acquiring European digital health platform Zava in an all-cash deal. At the time of the acquisition, Zava had over 1.3 million active users.
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