Consumer wellness and telehealth company Hims & Hers could be the next to test the public markets. The company has capitalized on the telehealth boom fueled by the COVID-19 crisis and the rising demand for telemedicine consultations, using its website to connect consumers seeking to buy prescription medicines with physicians.
According to a report from Reuters, the start-up is working with investment bank LionTree Advisors LLC weighing a potential sale to an unnamed special purpose acquisition company (SPAC), a “blank-check company” that uses the proceeds of an IPO to pursue an acquisition without telling their investors in advance which specific company they will buy. Reuters sources cautioned that there is no certainty that Hims will secure a sale to a SPAC and that other deal options are also being considered.
The brand has also doubled down on mental health with a category expansion and key hire. The brand launched free group therapy sessions this spring and is diving deeper into mental health, rolling out a new service that connects people with providers who can prescribe and manage common medications for depression and anxiety.
Julian Cohen, previously the co-founder of Breakthrough Behavioral (which was acquired by MDLive) and a behavioral health division lead at Teladoc, is stepping into the new role at Hims as SVP of Behavioral Health to support the category expansion.
“Hims & Hers was founded to break down the barriers to accessing care and eliminate stigma, both critically important efforts if we want to improve mental healthcare in this country,” Cohen said in a statement. “I’m thrilled to be joining the company to continue to build out its mental health category of care, and help Hims & Hers address the increasing need for mental health providers and treatments.”
The start-up launched in November of 2017 and raised $100 million in venture capital funding on a pre-money valuation of $1 billion in February of 2019, which was a 2x increase from its previous valuation. That round brought the total raised to $197 million in seven rounds of funding.
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