Investing.com -- Shares of Hims & Hers Health Inc. (NYSE:HIMS) surged 15.7% on Wednesday following the announcement that the company has acquired Trybe Labs, an at-home lab testing facility. This strategic move is set to introduce at-home lab testing capabilities to the Hims & Hers platform, which is expected to enhance personalized healthcare and treatment options for customers.
The acquisition of Trybe Labs, marketed as Sigmund NJ LLC, will enable Hims & Hers to offer comprehensive whole body testing, including at-home blood draws. This addition to the company’s services is anticipated to facilitate improved clinical decision-making by providing providers with a broader range of data and biomarkers. The initiative is part of the company’s aim to identify potential risks of disease before development and to support personalized treatments in clinical categories such as low testosterone, and perimenopausal and menopausal support.
Hims & Hers Health’s new at-home lab testing will utilize a blood lancet, which is a less invasive alternative to traditional needles or dried blood spot cards. The technology will allow customers to gain insights into their hormone levels, cardiac risk, stress markers, cholesterol, liver function, thyroid function, and prostate health. The data gathered will also contribute to the company’s AI developments, including MedMatch by Hims & Hers, which aims to provide an AI-powered healthcare experience with affordable, high-quality care tailored to individuals.
Dr. Patrick Carroll, Chief Medical (TASE:PMCN) Officer of Hims & Hers, emphasized the importance of on-demand care and treatments designed specifically for individual patients. He stated that access to richer data through at-home lab testing is a significant step toward elevating personalized and comprehensive care.
The financial terms of the acquisition were not disclosed, but Hims & Hers funded the purchase with cash on hand. The company plans to roll out the at-home testing services to customers over the next year.
On Wednesday, Canaccord Genuity analyst Maria Ripps raised the price target for Hims & Hers Health Inc. to $68.00 from $38.00, maintaining a sustained Buy rating on the company’s shares. The analyst’s endorsement reflects a positive outlook on the company’s growth prospects and its ability to expand its healthcare offerings.
The analyst commented: "On the heels of a successful Super Bowl ad as well as Robert F. Kennedy Jr.’s confirmation as Health and Human Services (HHS) Secretary, HIMS shares rallied more than 40% last week, and the stock is now up more than 140% YTD. As such, we believe forward growth expectations may now be notably elevated, which adds heightened risk of near-term volatility as the company introduces FY25 guidance."
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