Hims & Hers Health announced Tuesday it will acquire European telehealth platform Zava in its push to expand globally.
Dudum spoke at length during the company’s first-quarter earnings call in mid-May about the company’s commitment to global expansion.
Hims first expanded its global footprint to the United Kingdom in 2021 when it acquired London-based vertical health platform Honest Health.
Zava CEO David Meinertz, who launched the platform in 2011, said the deal will provide relief to an otherwise overwhelmed European healthcare system.
After the acquisition closes, Zava platforms will maintain their branding for a “few quarters” before being rebranded as Hims & Hers, Dudum said.
On Tuesday, Hims and Hers Health announced that, as part of its global expansion efforts, it will purchase the European telehealth platform Zava.
Andrew Dudum, the CEO of Hims & Hers, told CNBC in an interview that the company was “excited to take this moment to really accelerate both the European expansion, but also use this platform as an accelerant as we move into more markets.”.
According to the company’s press release, the deal is expected to close by the middle of the year. The company stated that information about the deal will be available in financial disclosures at closing, even though the terms of the acquisition were not made public.
At the company’s mid-May first-quarter earnings call, Dudum went into great detail regarding the company’s dedication to international growth.
At the time, Dudum stated, “Early traction in the UK gives us confidence that we can scale out platform globally and extend our mission to help people around the world.”.
When Hims purchased London-based vertical health platform Honest Health in 2021, it initially extended its global reach to the UK.
Through the acquisition of Zava, the company will increase its active customer base by approximately 50% and offer its services in Ireland, France, and Germany. This will add 1 point3 million customers to Hims’ current customer base of 2 point4 million subscribers.
David Meinertz, the CEO of Zava, who founded the platform in 2011, claimed that the agreement would alleviate the burden on the otherwise overburdened European healthcare system.
“The drug prices are more affordable than in the United States. S. so that more people can truly afford it, and there is a great demand for it,” Meinertz said. “Telehealth can help ease the growing demand and additional strains on the statutory systems. “,”.
According to the EU, the publicly funded health insurance and healthcare delivery systems in each of the member states are referred to as the statutory healthcare system. All citizens and residents are covered by these universal systems, though access and coverage may differ.
For a “few quarters” following the acquisition’s closing, Zava platforms will continue to use their current branding before changing it to Hims & Hers, according to Dudum. Meinertz is going to be promoted to general manager of the global company.
Dudum stated that he is completely convinced that moving forward is the right course of action, even though some businesses are reversing course or holding back on their growth projections due to macroeconomic uncertainty.
In general, European pharmaceutical prices are far more favorable to consumers than those in the United States. A. “Dudum said. “Given the cost and complexity of insurance and [pharmacy benefit managers], as well as the pricing power that exists here, having the ability to provide customers with accessible, customized treatments abroad may be just as easy as it is here at home. “.
