Hims & Hers Health has had its biggest one-day loss in over two months, following its rival 23andMe’s agreement to buy web-based healthcare platform Lemonaid Health.
Hims & Hers is a telehealth platform working on custom health and wellness in multi-specialty needs.
The report from Seeking Alpha says although there’s a buy rating on 23andMe, Daniel Grosslight, a Citi analyst, has said there’s a more competitive market for direct to consumer health services. He said that could end up impacting the profitability of numerous platforms.
In addition, Teladoc Health and American Well have also been trading lower.
A press release from 23andMe says that its acquisition of Lemonaid was going for $400 million.
Lemonaid is an on-demand platform for medical care and pharmacy access online. The press release says the Lemonaid Health mission is “affordable and direct” online access to care, including everything from consultation through treatment.
According to 23andMe CEO and co-founder Anne Wojcicki, the combination will result in “taking an important step in transforming the traditional primary care experience and making personalized healthcare a reality.”
By starting with genetics as the foundation, we will give patients and healthcare providers better information about health risks and treatments, opening up the door to prevent as well as better manage disease,” she said. “Lemonaid Health’s focus on the patient and its philosophy of delivering individualized care fits perfectly with our mission of empowering people to take control of their health.”
In other news concerning Hims & Hers Health, PYMNTS writes that the company was partnering with REVOLVE, a lifestyle eCommerce fashion retailer.
REVOLVE works as a digital resource for “discovery and inspiration,” and plans to offer “a wide variety of health and wellness” offerings from Hims & Hers.
REVOLVE will carry Hims & Hers products for skincare, haircare, hair growth, sleep supplements and sexual health – which were chosen for “affordability” as well as being developed “thoughtfully.”
“Both Hims & Hers and REVOLVE are redefining industries and leveraging our brands to identify closely with the next generation of consumers,” said Melissa Baird, chief operating officer of Hims & Hers, per the report.