The $7 billion telehealth platform Ro is doubling down on dermatology with a new, gender-agnostic brand dedicated to dermatology-backed prescription products and services. Increased trends around skin health, along with the popularity of the brand's affordable prescription offerings, spurred Ro's decision to develop its stand-alone gender-agnostic skincare brand, Ro Derm.
Zachariah Reitano, Ro CEO and co-founder, told BeautyMatter, "We constantly hear from patients that they want more dermatology treatments and services from us—skincare is a significant challenge for many. As a patient-driven company, our mission is to revolutionize healthcare by building accessible, impactful, and trusted care that people want. Ro Derm's launch is a continuation of us investing in the care our patients need and want."
According to Ro, access to dermatology is lacking, with fewer than one in 10 people who have conditions requiring medical treatment actually making an appointment to see a dermatologist. Of those that do, less than 15% see their dermatologist annually. Ro Derm intends to democratize the luxury of dermatology into a commodity anyone can access. The brand's dermatology products and services are on track to do over $20 million in revenue this year, representing an increase of over 50% from last year.
"Starting year three of a pandemic, patients now have higher standards for telehealth. They want healthcare that's convenient, accessible, and feels magical—to talk to a provider about their biggest skin concerns from the comfort of home and access treatment from diagnosis to delivery," Dr. Melynda Barnes, Chief Medical Officer at Ro, shared.
Ro Derm's current patient base is men and women between the ages of 25-45, elder millennials in particular, interested in clinical benefits and efficacy based on science and research. Marketing insights from the platform show patients are both those who are solutions-oriented, looking for targeted support with present-day challenges, and those looking for more preventative approaches.
With the launch of Ro Derm, the Rx skincare products from Roman (Ro's male-focused brand) and Rory (Ro's female-focused brand) have been repackaged and will be sold under the new Ro Derm brand and website. Ro Derm is launching with three capstone products making up the Custom Rx System with more product ranges in the pipeline. The formulas focus on science and efficacy using dermatologist-selected ingredients that are custom formulated to meet skin goals. The brand said Ro Derm formulas are intentionally and scientifically verified to be free from phosphates, phthalates, artificial dyes, and artificial fragrances like essential oils.
Beyond Ro Derm, sustainability is important across the Ro business. As a company, Ro has invested in opening 10 pharmacies across the country to reduce the number of packages that need to go on planes. They are also working to roll out more environmentally friendly packaging over the next year.
The global teledermatology market is projected to hit $44.86 billion with 24.3% CAGR by 2027. Competitor Him & Hers added prescription skincare to its platform in 2018, and formalized its teledermatology offering through the 2021 acquisition of Apostrophe. This is only the first phase of Ro Derm's launch process, which will continue over the coming months, evolving a facial skincare focus to offering a complete dermatologic-designed service leveraging Ro's vertically integrated platform and at-home care capabilities.
Along with the launch of Ro Derm, the company announced a $150 million capital raise at a $7 billion valuation following a $500 million Series D funding round in March 2021, bringing the total raised by the five-year-old business to $1 billion.
