Hims & Hers Shuts Down Apostrophe, Centralizes Dermatology Services
Hims & Hers Health, Inc., the telehealth company known for its personalized health and wellness products, announced the closure of Apostrophe, a skincare site it acquired in 2021. This strategic move aims to centralize the company’s teledermatology services, resulting in the cancellation of Apostrophe subscriptions and affecting customer access to the platform.
The shutdown will impact employees, with some roles being eliminated. While specific numbers were not disclosed, Hims & Hers stated that Apostrophe employees may have opportunities to transition into new roles within the company. This restructuring is part of a broader effort to streamline dermatology offerings and enhance operational efficiency.
Company officials emphasized that the decision to close Apostrophe is unrelated to recent changes in their weight-loss business. However, Hims & Hers has faced challenges in this sector, with its stock affected by the FDA’s recent decision regarding the semaglutide shortage. The company had previously invested in compounded versions of weight-loss drugs, a strategy now impacted by regulatory shifts.
The FDA’s decision has limited Hims & Hers’ ability to offer semaglutide copies, prompting the removal of commercially available semaglutide doses from their product lineup. Despite these setbacks, the company’s CFO confirmed that the weight-loss business continues to be a significant revenue driver.
Looking ahead, Hims & Hers projects strong performance for 2024, anticipating substantial revenue growth. The company plans to maintain its focus on weight-loss offerings, excluding semaglutide, while adapting to market conditions. Stock performance remains sensitive to these strategic moves and ongoing marketing efforts.
As Hims & Hers navigate these changes, industry observers will be closely monitoring the impact on its market position and financial outcomes in the competitive telehealth sector.
