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SAN FRANCISCO - Hims & Hers Health, Inc. (NYSE: HIMS), a prominent health and wellness company, has entered into an agreement to acquire ZAVA, a major digital health platform in Europe. The transaction is set to expand Hims & Hers’ operations in the United Kingdom and introduce its services into Germany, France, and Ireland, with additional European markets expected to follow.
ZAVA, known for its medical rigor and digital convenience, has served over 1.3 million active customers, with nearly 2.3 million consultations delivered in 2024 across its existing markets. The acquisition is anticipated to enhance Hims & Hers’ international reach and accelerate the company’s mission to provide personalized digital healthcare globally.
The company plans to roll out its services in these new markets over the next quarters, offering personalized care in areas such as dermatology, mental health, sexual health, and weight loss, with the support of healthcare providers fluent in local languages. Hims & Hers expects the integration of ZAVA’s operations to contribute positively to its financial performance by 2026.
Andrew Dudum, CEO of Hims & Hers, emphasized the universal demand for personalized healthcare and the potential impact of combining ZAVA’s established European presence with their own expertise. David Meinertz, CEO of ZAVA, echoed this sentiment, expressing enthusiasm for the joint effort to improve access to quality healthcare across Europe.
The all-cash acquisition will be financed from Hims & Hers’ balance sheet and is expected to close in the second half of 2025. This move aligns with the company’s strategy to continue expanding globally in response to the growing demand for personalized healthcare services.
This news is based on a press release statement from Hims & Hers Health, Inc.
In other recent news, Hims & Hers Health, Inc. announced a new pricing option for the prescription obesity treatment Wegovy, allowing new customers to start their treatment at $549 per month over a six-month period. This initiative aims to make obesity care more affordable and includes a comprehensive weight loss program. Despite this pricing adjustment, Citi maintained its Sell rating on Hims & Hers, with a price target of $30, noting that the company’s strategy is a response to competitive pricing in the market. Truist Securities also maintained its Hold rating with a $45 price target, commenting on potential challenges posed by Evernorth’s new pharmacy benefit that caps the monthly cost of weight loss medications at $200.
Morgan Stanley reaffirmed an Equalweight rating with a $40 price target, observing a 25% year-over-year increase in app downloads for April, although there was a slight month-over-month decrease. Sales data showed a 67% year-over-year growth for Hims & Hers in the second quarter to date, which is slightly below the company’s guidance. The company had projected second-quarter revenue between $530 million and $550 million, slightly below analyst expectations. These developments reflect the company’s ongoing efforts to navigate a competitive market environment while adjusting its strategies to maintain customer engagement.
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