Post by Joel Selanikio

hims & hers did $1.48B in 2024 revenue at 79% gross margins. The retail pharmacy industry runs on single-digit margins. Eli Lilly and Company partners with Ro through LillyDirect to bypass PBMs entirely. The DTC telehealth duopoly has effectively disintermediated the wholesaler, the PBM, and increasingly the in-person clinician for lifestyle and chronic conditions. Hair loss, ED, weight loss, mental health, hormone replacement, and skin care all now run through this channel. The 2026 patent cliff — $200B+ in global brand sales facing generic erosion — opens cardiometabolic and chronic disease as the next targets. Meanwhile, Hims has acquired its own 503B compounding facility. That is a fully integrated DTC pharmaceutical manufacturer that owns the patient relationship, the prescription, and now even the molecule. https://buff.ly/p282TED #DrYou #FiveMigrations #HealthcareStrategy