Hims & Hers to Buy Eucalyptus for $1.15B, Stock Climbs 0.5%
Hims & Hers agreed to acquire Australian digital health company Eucalyptus for $1.15B, sending shares up 0.5% despite a 90% nine-month decline. The company faces patent litigation from Novo Nordisk and is set to report Q4 results on Feb. 23, with revenues seen rising 28.7% and EPS falling 81.8% year-over-year.
1. Acquisition of Eucalyptus
Hims & Hers has agreed to acquire Australia’s Eucalyptus for $1.15 billion, expanding its digital health platform and international footprint. The deal is expected to enhance the company’s service offerings in telehealth and digital pharmacy while providing access to Eucalyptus’s existing subscriber base.
2. Stock Performance and Technical Indicators
Shares briefly rose 0.5% on the acquisition announcement but remain down 90% over the past nine months, trading near 17-month lows. A 14-day relative strength index of 10.2 suggests deeply oversold conditions, indicating a potential technical rebound.
3. Upcoming Q4 Results and Litigation Risks
Hims & Hers will report fourth-quarter results on Feb. 23, with consensus estimates projecting 28.7% revenue growth but an 81.8% EPS decline year-over-year. The company also faces a patent lawsuit by Novo Nordisk over compounded semaglutide products, which may pressure its weight-loss segment and margins.