Hims & Hers plans to acquire direct-to-consumer skincare startup Apostrophe. Photo credit: Apostrophe
Direct-to-consumer health startup Hims & Hers is buying a dermatology business. The company recently struck a deal to buy Apostrophe, which has a similar business model, for an undisclosed amount.
Oakland, Calif.-based Apostrophe sells prescription acne treatments, such as topical creams and pills. It also offers treatments for wrinkles, rosacea and hair loss.
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Like with Hims, users conduct a virtual consultation with a dermatologist, including filling out a questionnaire and sending in images of their skin, before getting a prescription delivered. Apostrophe contracts with an outside physician group for the visits, which cost about $20. The company is currently licensed to fulfill orders in 29 states.
With the acquisition, Hims won’t just be adding to the dermatology services it can provide, but will also get more fulfillment centers to help ship medications to patients. Apostrophe currently has three pharmacies in Arizona, California and Colorado.
“Personalized dermatology has become increasingly of interest to our consumers,” Hims & Hers CEO Andrew Dudum said in a news release. “In the seven years since its founding, Apostrophe has built a brand that, like Hims & Hers, has attracted and heavily engaged GenZ and Millennial consumers. With this investment, we will accelerate our dermatology business, offering highly personalized dermatology treatments at scale.”
After the company went public through a blank-check deal earlier this year, Dudum said the company would look to expand into more areas of care, with a “huge continued focus” on mental health, primary care, and dermatology. At the beginning of the month, Hims acquired Honest Health, a London-based company that specializes in hair loss products.
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Hims’ acquisition of Apostrophe is expected to close in the next three months. Apostrophe CEO and Co-Founder Ben Holber will lead the combined company’s dermatology business line.
Credit: Screenshot of Hims website
