Hims & Hers Completes Eucalyptus Buyout Early, Leerink Sees 10% Downside on GLP-1 Risks
HIMS•Hims & Hers closed its Eucalyptus buyout a month early, reinforcing its $6.5B revenue and $1.3B EBITDA targets for 2030. Leerink maintained a Market Perform rating with a $25 target implying 10% downside on GLP-1 risks, while Banks urged FDA to review Hims’ advertising and pricing practices.
1. Early Acquisition of Eucalyptus
Hims & Hers closed its acquisition of digital health platform Eucalyptus one month ahead of schedule, integrating operations across the U.S., U.K., Australia, Canada and other markets. The deal adds more than 850,000 Eucalyptus customers to its closed-loop ecosystem and expands its global presence.
2. Analyst Rating and Downside Forecast
Leerink maintained a Market Perform rating on Hims & Hers with a $25 price target implying roughly 10% downside. The brokerage cited uncertainty over incremental profits from branded GLP-1 treatments as a key driver of its cautious stance.
3. Political and Regulatory Scrutiny
Senator Banks urged the FDA to examine Hims & Hers’ advertising, pricing and subscription practices for compounded and branded GLP-1 therapies. The move highlights renewed political scrutiny of telehealth weight-loss services and could affect regulatory requirements.
4. Implications for Growth Targets
The acquisition supports Hims & Hers’ long-term targets of $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030. Management expects the combined platform and additional data points to drive personalized care and future growth.
