Hims & Hers achieves major global expansion with its planned acquisition from Australian digital health company Eucalyptus, a good move for the company as it faces regulatory and legal challenges in the United States over the sale of GLP-1 compounds, experts say.
San Francisco-based Hims & Hers is a direct-to-consumer health and wellness platform that provides support in sexual health, weight loss, hair, skin, primary care, mental health and other areas. Eucalyptus, meanwhile, operates consumer-focused virtual clinics and brands, including weight loss platform Juniper, men’s health program Pilot, and fertility and reproductive care platform Kin.
The deal, which was announced Thursday, is valued at approximately $1.15 billion, with $240 million in cash at closing and the remainder paid in deferred, performance-based earnouts through early 2029. The acquisition expands Hims & Hers into Australia and Japan, while strengthening its presence in the United Kingdom, Germany and Canada. Eucalyptus has served approximately 775,000 customers.
This is a good deal for Hims & Hers, according to Michael Abrams, managing partner of Number of and associates. The companies are very complementary as they both offer services that include men’s health, women’s health, weight health and dermatology. They also both share the mission of developing personalized, consumer-driven healthcare.
Additionally, the acquisition allows Hims & Hers to expand globally while diversifying its customer base and revenue base, he added.
“It seems clear that one of the key considerations in acquiring Hims & Hers is to move from a primarily U.S.-centric telehealth and DTC care model to a global consumer health platform,” Abrams told MedCity News. “Strategically, the acquisition of Eucalyptus gives Hims & Hers geographic diversification from its core U.S. markets – a move likely designed in part to reduce revenue concentration risks and expand patient bases.
This is particularly desirable for Hims & Hers as it faces a trial from Novo Nordisk on the company’s compounded versions of GLP-1, which are custom-made and contain the same active ingredient found in branded GLP-1s like Wegovy, Abrams said. They are not FDA approved, and many (including Novo Nordisk) claim they are. dangerous.
The lawsuit and the scrutiny Hims & Hers is facing over the sale of these drugs have put pressure on the company’s stock and highlight “the risks of its U.S. pharmacy-centric model,” Abrams noted.
Another health expert said he was “cautiously optimistic” about the deal, noting that Hims & Hers is down due to the crackdown on GLP-1 compounding and legal issues with Novo Nordisk.
“International expansion of existing product categories will diversify revenues and provide new channels for innovation,” said Warren Templeton, chief executive of Health2047. “A big unknown is the extent to which GLP-1s are a revenue driver for Eucalyptus, and whether similar legal and regulatory challenges already announced could put downward pressure on the market. [over-the-counter] gray market. That said, the structure of the transaction seems to recognize this with earnouts and deferred payments.
Beth Mosier, director of healthcare M&A at West Monroe, said Hims & Hers’ acquisition of Eucalyptus “signals continued expansion in the areas of weight loss, anti-aging, mental health and wellness by extending affordable, personalized and convenient healthcare to consumers around the world who are increasingly seeking accessible alternatives to traditional models of care.”
The deal is expected to close in mid-2026.
Photo: designer491, Getty Images
