$HIMS (-1.68%) just announced its $31M acquisition of a 503B compounding pharmacy. What’s driving this move?
📊 Here's what you need to know:
1️⃣ Scale and Supply: 503B facilities can produce medications in bulk and are crucial for addressing shortages—like the current demand for GLP-1 weight loss solutions. By owning this facility, Hims can continue offering compounded GLP-1 drugs, even post-shortage, without infringing on patents.
2️⃣ New Product Launches: This positions Hims to expand into new areas like hormone and menopause therapies, which require sterile medications that 503B facilities excel at.
3️⃣ Vertical Integration: By controlling this part of the supply chain, Hims can improve margins and deliver more personalized treatments. This move strengthens Hims' infrastructure and prepares it for future growth. With 1.9M subscribers already, Hims is just getting started 🚀.
We are very long.
