Today, Hims & Hers Health, Inc., a healthcare company known for its telehealth services, disclosed the issuance of 976,341 Class A common shares to Nivagen Pharmaceuticals, Inc. This move is part of the previously announced acquisition of Seaview Enterprises LLC, doing business as MedisourceRx, which was finalized on Thursday.
The transaction, detailed in a prospectus supplement filed with the SEC, is pursuant to a purchase agreement dated July 5, 2024. The acquisition is aimed at expanding Hims & Hers Health's product offerings and market reach. The shares, referred to as Resale Shares, have been registered as part of the company's automatic "shelf" Registration Statement on Form S-3, which was also filed today.
The Resale Shares were issued exempt from registration under the Securities Act of 1933, as amended, according to the terms of the Purchase Agreement. The filing included an opinion from legal firm Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP regarding the legality of the issuance of these shares.
Hims & Hers Health, listed on the New York Stock Exchange under the ticker NYSE:HIMS, is headquartered in San Francisco, California. The company, previously known as Oaktree Acquisition Corp., has evolved to become a key player in the telemedicine space, offering a range of health and wellness products and services.
In other recent news, Hims & Hers Health, Inc. experienced a notable 52% year-over-year revenue increase in the second quarter of 2024, reaching $316 million, with an adjusted EBITDA of $39 million. The company also added nearly 155,000 new users, bringing the total subscriber count to 1.9 million.
In a strategic move, Hims & Hers acquired an FDA-registered 503(b) facility, which is anticipated to bolster its supply chain capabilities.
Financial analysts have provided mixed reviews on the company's performance and future prospects. Citi maintained a Neutral rating on Hims & Hers, while Needham initiated coverage with a Buy rating and a $24 price target.
On the contrary, Jefferies reduced its price target to $18, citing a need to update their financial model. Deutsche Bank, however, increased its target to $23, highlighting the company's growth prospects.
Hims & Hers' entry into the compounded GLP-1 space has been a point of interest among analysts. Needham believes this move will positively influence the company's growth trajectory. However, the introduction of Eli Lilly (NYSE:LLY)'s diabetes treatment, Zepbound, might pose competition to Hims & Hers' offering of compounded Semaglutide, according to Citi's analysis.
Looking ahead, Hims & Hers projects its 2024 revenue to fall between $1.37 billion and $1.4 billion, with an adjusted EBITDA between $140 million and $155 million. The company also aims to have over 1 million personalized subscriptions by year-end.
InvestingPro Insights
In light of Hims & Hers Health's recent acquisition and strategic growth initiatives, it's valuable to look at the company's financial health and market performance for a comprehensive understanding. According to real-time data from InvestingPro, Hims & Hers Health currently boasts a market capitalization of $3.02 billion, reflecting the market's recognition of the company's value. The revenue growth is particularly impressive, with a 50.15% increase over the last twelve months as of Q2 2024, and a quarterly revenue growth of 51.82% for the same period, signaling a strong expansion trajectory.
InvestingPro Tips highlight that the company's management has been actively buying back shares, which can often be a sign of confidence in the company's future prospects. Additionally, analysts have revised their earnings expectations upwards for the upcoming period, suggesting a positive outlook on the company's profitability. It's worth noting that Hims & Hers Health's net income is expected to grow this year, adding to the optimistic sentiment around the company's financial performance.
For investors interested in further insights and tips, InvestingPro offers additional metrics and analysis. There are currently 14 additional InvestingPro Tips available, providing a deeper dive into the company's financial health and future prospects. These tips can be accessed through the InvestingPro platform, offering valuable information for making informed investment decisions.
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