Hims & Hers Shuts Down Apostrophe Skincare Brand Amid Strategic Shift

In a strategic move to streamline its operations, Hims & Hers Health has announced the discontinuation of Apostrophe, the personalized dermatology business it acquired in 2021 for $190 million. This decision aims to simplify the company's dermatology offerings by integrating services into a unified platform. citeturn0news10

Background on Apostrophe Acquisition

Apostrophe specialized in providing personalized acne treatments through telehealth consultations, aligning with Hims & Hers' mission to offer accessible healthcare solutions. The acquisition was intended to bolster Hims & Hers' dermatology segment by incorporating Apostrophe's customized skincare services.

Reasons for Discontinuation

The company cited the need to "simplify its dermatology products and operations into one seamless experience" as the primary reason for shutting down Apostrophe. By consolidating services under the Hims & Hers brand, the company aims to enhance operational efficiency and provide a more cohesive experience for customers. citeturn0search2

Impact on Customers and Employees

Effective immediately, all Apostrophe subscriptions have been canceled. Customers will lose access to their provider teams and patient accounts within 30 days. Hims & Hers has encouraged affected customers to transition to its main dermatology platform to continue receiving skincare treatments. citeturn0news10

The shutdown has also led to workforce adjustments. While some roles have been eliminated, certain Apostrophe employees are being reassigned within the company. This restructuring reflects Hims & Hers' efforts to optimize resources amid the consolidation. citeturn0news10

Financial Context and Market Reactions

Despite the shutdown, Hims & Hers reported robust growth in 2024, with a 69% revenue increase to $1.48 billion, largely driven by its weight-loss business. The company's stock experienced a 4.5% uptick following the announcement but has faced a decline of over 45% since the FDA removed semaglutide, a weight-loss drug, from its shortage list. This change affects telehealth firms like Hims & Hers that produce compounded versions of such medications. citeturn0news11

Future Outlook

Hims & Hers remains committed to offering dermatology treatments under its primary brand. The company projects continued revenue from its weight-loss services in 2025, excluding semaglutide, and is expanding its subscriber base. Additionally, the recent acquisition of Trybe Labs for at-home lab testing indicates a strategic move to diversify and enhance its healthcare offerings. citeturn0news10

The discontinuation of Apostrophe underscores Hims & Hers' strategic initiative to streamline operations and focus on core services, aiming to deliver a more integrated and efficient healthcare experience to its customers.