Direct-to-consumer health startup Hims & Hers buys dermatology company. The company recently made a deal to buy Apostrophe, which has a similar business model, for an undisclosed amount.
Apostrophe, based in Oakland, Calif., Sells prescription acne treatments, such as topical creams and pills. It also offers treatments for wrinkles, rosacea and hair loss.
As with Hims, users conduct a virtual consultation with a dermatologist, including completing a questionnaire and sending pictures of their skin, before getting a prescription. Apostrophe contracts with a group of outpatient doctors for the visits, which cost around $ 20. The company is currently licensed to fulfill orders in 29 states.
With the acquisition, Hims will not only add to the dermatology services it can provide, but will also get more distribution centers to help ship medications to patients. Apostrophe currently has three pharmacies in Arizona, California and Colorado.
“Personalized dermatology is of increasing interest to our consumers,” Hims & Hers CEO Andrew Dudum said in a press release. “In the seven years since its inception, Apostrophe has built a brand which, like Hims & Hers, has attracted and strongly engaged GenZ and Millennial consumers. Thanks to this investment, we will accelerate our activity in dermatology, by offering highly personalized dermatological treatments on a large scale. “
After the company went public with a blank check deal earlier this year, Dudum said the company would look to expand into more areas of care, with a “continued focus” on mental health, care. primary and dermatology. Earlier this month, Hims acquired Honest Health, a London-based company specializing in hair loss products.
The acquisition of Apostrophe by Hims is expected to be finalized within the next three months. Apostrophe CEO and co-founder Ben Holber will lead the dermatology business line of the combined company.
Credit: Screenshot from Hims website