Categories: Investments

Hims Inc. May Go Public Through Blank-Check Company

Remote healthcare firm Hims Inc. is getting close to an arrangement to go public via a merger with special purpose acquisition company (SPAC) Oaktree Acquisition Corp., Bloomberg reported, citing unnamed sources, at a time when the SPAC model has become more popular.

The arrangement could bring a valuation of approximately $1.6 billion for Hims, according to unnamed sources in the report, who noted that Oaktree is in discussions with investors to bring in approximately $75 million to assist in providing backing for the deal. The intentions aren’t set in stone and could not come to fruition.

As it stands, Hims has notched $197 million from investors such as Forerunner Ventures and Institutional Venture Partners, among others. The company was worth approximately $1.1 billion last year per PitchBook and was started in 2017.

It is known for providing prescriptions for the treatment of conditions for which people could be reticent to go to a provider offline, such as hair loss. Clients undergo a virtual session with a physical and then get a prescription in the mail.

The firm also has grown into mental-health and urgent care offerings as the demand for remote healthcare spikes amid the coronavirus. In addition, Hims Inc. has a business called Hers for women.

As stock market indices in the United States attain new highs, SPACs are gaining momentum. They are development-stage shell firms that don’t possess their own business plans but they merge with private firms that do have them.

Getting American patients to use telehealth offerings was a challenge in a world before the coronavirus: JD Power determined that just 10 percent of consumers utilized telehealth last year.

Once COVID-19 occurred, however, doctor’s offices closed and patients, as well as providers, suddenly viewed telehealth in a new light.

Virtual visits spiked 4,345 percent for non-urgent care from March 2 to April 14 and increased 683 percent for urgent care per a recent study of NYU Langone patient visits.

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.