HIMS follow up post

I made this post 3 months ago after HIMS Q4 earnings showing their first quarter of positive net income.

I planned on waiting longer before making a follow up post to talk about how they performed, but decided today is a good time since they just announce they're adding GLP1 weight-loss drugs as one of their offerings. As I said in my last post people are high on weight loss drugs, before I was bullish just on the subscriber growth and margins. But now they're adding the real winner here before their competitors.

Key reasons this is very bullish:

• HIMS is charging just $200/mn for GLP1 treatment, which is cheaper than almost anywhere else (NOVO Nordisk charges $1,350)
• GLP1 treatment for weight-loss is covered by less than 25% of insurance companies, since HIMS doesn't use insurance this is actually a benefit since they are cheaper and most people are paying out of pocket
• HIMS is more subtle and doesn't require face-to-face contact with anyone, lots of people are embarrassed to go to their doctors for treatment. This has always been a benefit to HIMS but with the above points it's just the cherry on top

Q1 results for HIMS were also very strong. As a shareholder I am looking forward to the seeing how this all plays out. It's only 1% of my portfolio at the moment with $8.95 cost basis, but I do plan on DCA'ing up.