19H·

Hims & Hers wastes no time - already dozens of ads online on Facebook for Wegovy - $599 per month, but pretty steep

$HIMS (-5.51%)

14 Comments

Bubu@Bubu_98

12H

Confirms the idea that they will work as a distributor for the big pharma players in the future.

The best part of the deal is actually that they will generate $100 AOV per month for their service as the remaining $499 will go to Novo.

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spadan21@spadan21

11H

@Bubu_98 I'm very excited about the future🚀

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Jonas@Leipziger_Jung

@Bubu_98 I'm really curious to see how this will continue. I can also imagine that at some point they will use the vast amounts of FCF and AI data they have to develop their own drugs.
The journey remains exciting.

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Bubu@Bubu_98

@Leipziger_Jung I doubt that. I think they will simply continue to personalize cheap generics and distribute them via their app. In this way, they can turn a 5$ drug into a 10$ drug and the outcome for the user is higher. In addition, other blockbuster drugs will then come onto the platform at partnership conditions. Will be exciting 💪

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The W.@thewolfofallstreetz

@Leipziger_Jung I can also imagine this, especially as they are increasingly integrating vertically. So far, they have "only" sold generics and personalized medicines in the event of a shortage or if there is a medical need for personalization.

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The W.@thewolfofallstreetz

@Bubu_98 How did you come up with the $100 AOV?

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Jonas@Leipziger_Jung

@Bubu_98 You're right about that.
But look ... the interesting thing about proprietary drugs is that you can demand incredible margins thanks to the patents you have on them.
The only downside is the high development costs and the risk that the drug might not even be approved afterwards. But this is where AI will be exciting in the future. I think that if AI is going to have a big impact in any area, it will be in drug development. From finding new molecules/substances, to personalization to the respective patient, to much faster studies, because with advanced algorithms you can modulate the effects on the body much faster than now, where you have to conduct studies forever.

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Jonas@Leipziger_Jung

@Leipziger_Jung This would greatly reduce both the time it takes for a drug to be ready and its development costs. But that's just speculation for now, of course. Time will tell.

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The W.@thewolfofallstreetz

@Leipziger_Jung Don't forget that patents expire at some point. That's actually a bad business model because you always have to bring new innovative drugs to the market, otherwise you lose your growth drivers and your competitive advantage. Hims & Hers does not have this problem.

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Jonas@Leipziger_Jung

@thewolfofallstreetz They will continue to sell their generics. They won't disappear. And you always have the patents for 5 to 10 years or so. With the high margins, you can also recoup the costs.
My case only works if AI really has the impact that everyone is talking about. If you were able to reduce the costs and development time extremely in advance and then still have your 10-year patent on it, it would be much more worthwhile than it is now.
And the competitive advantage I see for HIMS is that they have a lot of data about their users that other pharmaceutical giants don't have or would have to buy in. This should enable HIMS to develop better drugs with AI more quickly. Especially if, as Dududm guided, they have 10 million members by 2030. Data is everything in the future.

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The W.@thewolfofallstreetz

@Leipziger_Jung In the long term, Hims & Hers is a data business, but not yet. They collect a lot of data so far, but I think it's mostly superficial data because they don't have individual patient blood counts, for example. That could change in the next few years with the acquisition of the At-Home Lab Testing Facility in Feb-25, and they need to show that MedMatch is really a major factor. But the track record so far speaks for itself.

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Sebi@Seebi

12H

novo lemmings celebrate this as a success😄😄

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Artiskon@Artiskon

12H

@Seebi you again^^

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Sebi@Seebi

12H

@Artiskon 👐

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