Hims and Hers just shut down its dermatology business after stock slump on FDA's weight-loss drug decision

• Hims and Hers is shutting down the dermatology business it acquired in 2021, BI has learned.
• The company said it's closing skincare site Apostrophe to centralize its teledermatology offerings.
• Hims and Hers' stock has seesawed wildly this year as its weight-loss business faces new pressures.

Hims and Hers is shutting down its dermatology business, Business Insider has learned.

On Friday, the telehealth company discontinued Apostrophe, the direct-to-consumer skincare startup that Hims and Hers bought in 2021 for $190 million.

According to a message on Apostrophe's website, all subscriptions will be canceled as of March 7, and customers will lose access to their provider teams and patient accounts after 30 days. The message suggested visiting Hims and Hers to pursue further skincare treatment.

"After careful consideration, we are discontinuing Apostrophe to simplify our dermatology products and operations into one seamless experience for our customers and our continued focus to provide customers with access to the most effective care," Hims and Hers said in a statement to BI.

Hims and Hers already offered dermatology services before buying Apostrophe and has continued to provide them after the acquisition. The company, which offers a variety of services through its online platform, including treatments for hair loss, erectile dysfunction, and mental health, said shuttering Apostrophe will help it centralize its skincare offerings for customers.

Per the company, the shutdown isn't related to the upcoming changes to its weight-loss business or the pressures on its stock, which fell by 27% last month after the Food and Drug Administration declared an end to the shortage of semaglutide, the active ingredient in blockbuster weight-loss drugs Ozempic and Wegovy.

Hims and Hers has bet big on prescribing compounding versions of these weight-loss drugs, including by buying its own compounding pharmacy in September. The FDA has allowed pharmacies to make compounded versions of semaglutide since 2022 to broaden patient access to the drugs.

But with the shortage now over, the company will no longer be able to make copycat versions of the shots.

The company's chief financial officer Yemi Okupe confirmed after Hims and Hers' fourth-quarter earnings that the company plans to remove all commercially available doses of semaglutide from its platform.

Hims and Hers had a strong year in 2024 buoyed by the growth of its weight-loss business. Its revenue jumped 69% to $1.48 billion, with its GLP-1 offering bringing in $225 million.

The company said it still expects its weight-loss business to bring in $725 million in revenue in 2025, excluding commercially available doses of semaglutide. Hims and Hers will continue to offer weight-loss pills and personalized weight-loss support, including nutrition plans and coaching.

The stock is up 40% since the beginning of the year, peaking in mid-February after Hims and Hers ran a controversial commercial about its weight-loss platform during the Super Bowl and announced the next week that it had bought at-home lab testing company Trybe Labs.