Hims, a direct-to-consumer health company, is going public via SPAC

  • 📰 CNBC
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Hims, Inc., a direct-to-consumer company that sells health products and services targeted at millennials, is going public just three years after it got its start. CEO Andrew Dudum discusses why the company went the SPAC route.

SPACs are an increasingly popular vehicle for companies to enter the public markets. They offer a way for private companies to go public on an accelerated timeline without jumping through certain regulatory hoops.

The company will be valued at $1.6 billion, and the transaction will deliver up to $280 million in cash. Once the transaction is completed, the company will be traded on NYSE under the symbol "HIMS." It is expected to close by the end of 2020. There's also a primary care offering for people with ailments like sore throat, congestion and pink eye to talk to a health provider online, which is available for a flat fee of $39 per visit.

One of the most expensive aspects to building a direct-to-consumer business is customer acquisition. Dudum said those costs are going down over time, as more people are finding the service organically. He said the company is tapping into a growing market of people willing to pay out-of-pocket because of rise in co-payments and high deductible plans.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Top SPAC underwriters, legal advisers, and PIPE investors - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Playboy joins SPAC frenzy, to go public after nearly 10 years private - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. TheOnion
Source: BusinessInsider - 🏆 729. / 51 Read more »

Top SPAC bankers, lawyers, and investors behind the blank-check boom - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Playboy joins SPAC frenzy, to go public after nearly 10 years private - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. TheOnion
Source: BusinessInsider - 🏆 729. / 51 Read more »