Hims & Hers

$HIMS (+10,45 %) 🚀🚀🚀

The FDA is keeping tirzepatide on the list of shortage drugs. As evidence of the shortage, it also cites "steady and growing" demand from compounders such as $HIMS (+10,45 %) .

This is a good sign that semaglutide will remain on the shortage list.

Updated by the FDA on December 19, 2024.

Full link to the document:

https://storage.courtlistener.com/recap/gov.uscourts.txnd.395430/gov.uscourts.txnd.395430.30.0.pdf

$HIMS (+10,45 %)

The FDA will discuss whether or not the GLP-1 "Tirzepatide" is still in short supply towards the end of the trading day tomorrow, after the Outsourcing Facilities Association took legal action against the FDA's decision to remove the weight loss drug from the shortage list. If the FDA were to declare the shortage over, many fear that Semaglutide will soon be removed from the list as well.

Is Amazon a threat to Hims and Hers?

The share price of $HIMS (+10,45 %) recently suffered a 25% slump after Amazon announced its renewed efforts in the healthcare sector. The tech giant is expanding its offerings in this area, causing concern among investors in the telehealth industry, particularly Hims. Amazon's aggressive entry into the market with its Prime-based healthcare services raises the question of whether this new competition will shake up the market and force incumbents like Hims to adapt or lose market share.

Amazon's entry into the healthcare sector

Amazon's latest foray into the healthcare sector is causing a stir in the industry, particularly among investors in Hims & Hers ($HIMS). Since its inception, Hims has established itself as a leader in telemedicine by providing accessible care in men's health, mental health and more. With over 2 million customers and annual revenue growth of over 50%, the company has positioned itself as a serious player in a fast-growing industry. But Amazon's new Prime-based telehealth services are increasing competitive pressure and raising questions about Hims' future development.

In my opinion, Amazon's move will have both short-term and long-term implications. However, to understand the potential consequences, it is important to look at the bigger picture.

Market share of Hims & Hers

Hims & Hers has secured an impressive 49% market share in the telemedicine sector and established itself as an industry leader. This success explains why Amazon is launching a near-identical service to mimic Hims' proven business model.

Amazon's new offering: disruptor or just another competitor?

On November 14, 2024, Amazon announced the expansion of its healthcare services for Prime members. The telehealth service addresses various wellness needs at a low monthly price of $16. It covers over 30 areas of treatment, including hair loss, erectile dysfunction, skin aging and mental health. Consultations start from $29 for text and $49 for video consultations, with same-day medication delivery in major cities. With 200 million Prime members, the offering poses a direct threat to Hims, which serves just 2 million customers.

Amazon's competitive advantages:

Price and accessibilityAmazon's offering is competitive at $16 per month, especially when combined with Prime benefits. This low-cost, subscription-based model could appeal to price-sensitive customers who value convenience.

Wide reachAmazon's infrastructure enables efficient delivery of medicines, often on the same day. Hims, which relies on third-party shipping, cannot offer this speed.

Extensive range of servicesWhile Hims focuses on men's health and skincare, Amazon offers a broader range of treatments, which could attract consumers who prefer an all-in-one solution.

Why Hims could remain strong

Despite increased competition, Hims has an impressive track record of adapting to new entrants. The stock has risen over 200% in the last year, despite Amazon's gradual entry into telemedicine.

Reasons for confidence:

Personalization and customer loyaltyHims focuses on personalized wellness offers that are specifically tailored to men. This niche strategy sets the company apart from Amazon's mass market approach.

Transparent pricingHims has a clear and predictable cost structure, while Amazon is criticized in this area.

Financial strengthWith a market capitalization of USD 5.07 billion and expected sales of USD 2.14 billion in 2025, Hims shows solid growth potential.

Challenges for Amazon in the healthcare sector

Although Amazon's brand and infrastructure are strong assets, the healthcare market presents challenges, including regulatory hurdles and the need for personalization. Amazon's previous initiatives, such as the failed Haven project, show that even a giant like Amazon can struggle to succeed in this complex area.

Conclusion: competition or opportunity?

The healthcare industry offers ample room for both providers, as the global market is expected to grow to USD 560 billion by 2028. While Amazon's entry puts pressure on Hims, it could also mean the validation of its business model. Ultimately, Hims' specialization, customer loyalty and strong market position will be crucial to remain successful in this dynamic market.

On November 14, I added to my position in Hims at €20.5 (approx. $21.68), which now makes Hims one-fifth of my assets. I am confident that this strategic investment will pay off as the company continues to expand in this fast-growing market.

Thanks for reading, if you have some GetQuin points to spare I'll gladly take them for the Patagonia jacket [1000/28000]

👍= I'm invested!

❤️ = Not invested yet!

Will Amazon make it this time? $HIMS (+10,45 %)

I find this comment extremely pertinent, in addition to my post at the weekend!

In German:

$HIMS (+10,45 %)

So, people have chosen Apple and Samsung over Fire Phone, Roku over Fire Stick, Netflix over Amazon Video, Spotify over Amazon Music, even Chewy over Amazon for pet supplies.... but we're supposed to believe that in the most sensitive areas such as health, privacy and the use of medicines and chemicals, people trust Amazon, which sells third-party products? Instead of a company that specializes in building relationships with its patients and providing personalized treatments? Riiichtiiig... we all know this is an attack by hedge funds. We'll be back with full force soon.

Road to Patagonia Vest [1000/28000]

Update on Hims & Hers🔥💣 $HIMS (+10,45 %)

After selling my position at €22.04 with a profit of approx. 55%, I have now re-entered with 50% of the capital at €19.08. The sell-off is exaggerated and we will return to a level of €22-24 in a few days/weeks. Maybe even more, there is a lot of momentum here.

I am still convinced in the long term, but would also like to profit from short-term trades. So far it's working well.

I am expanding my position at €17 and €16. If we fall below that, we will butter up again🫡

Are you buying at the current price?

Elon looks $HIMS (+10,45 %) optimistic

It's not just about GLP1, but about many areas of medical treatment.

HIMS CEO Andrew's vision from day one has been to make healthcare accessible to all at the lowest cost. Insurance companies and PBMs are a big money grubber in the US!

Road to Patagonia [800/28000] getquin points!