Hims & Hers Health (a.k.a. the company that made it socially acceptable to order s*x pills and hair loss meds from your couch) just decided they want to be the next big thing in diagnostic testing. Their latest move includes snatching up Trybe Labs, an at-home lab testing facility, so they can start offering at-home blood draws and lab testing. Meaning, Hims & Hers is officially entering the stick-you-with-a-lancet game, and Wall Street is absolutely frothing at the mouth over it—sending shares up 20% to an all-time high after the news dropped.

(Source: Giphy) 

So, what’s the deal look like? Well apparently, it’s an all cash-deal (which, by the way, they’ve got plenty of—$166m in cash and over $600m in total assets of Q3)--with the goal being to expand their empire beyond just prescriptions and into the land of diagnostics. For more context, over the next year, the company will roll out at-home blood testing kits complete with a Tasso blood lancet—a single-use device that sticks to your arm, pricks your skin, and collects a microtube of blood. (Think Theranos, but, you know... legit.)

With this move, Hims & Hers will be able to test for cholesterol, hormone levels, cardiac risk, thyroid function, liver function, stress markers, and even prostate health. Translation: This is a bigly data play, plain and simple. Hims & Hers has already hinted that they’ll use de-identified bloodwork results to train AI-powered healthcare models, because apparently, if you’re not training an AI in 2025, are you even running a business that’s sustainable for the future? 

(Source: CNBC) 

In addition to the data play here, this is also a direct shot at Quest Diagnostics and Labcorp, two of the biggest names in diagnostic testing. Those guys have been ripping off patients with overpriced lab work for years, and Hims & Hers is swooping in with a cheaper, more convenient alternative. 

Plus, it’s also a natural extension of their business. They’re already revolutionizing telehealth by making prescription meds accessible without the hassle of in-person doctor visits—so why not eliminate the hassle of lab work, too? What’s more is the timing of this. This major acquisition comes just months after Hims & Hers entered the weight-loss drug game with compounded GLP-1s. So it’s clear the company is on a warpath, expanding into every corner of consumer healthcare while calling out Big Pharma for being “priced for profits, not patients” (as they boldly declared in their Super Bowl ad—savage).

(Source: Investopedia) 

Regarding the stock though, the initial news was taken well as the stock roared 20% yesterday. However, some of those gains have been eaten up with shares recorrecting -8.65% on the day. But, but, but, still Hims and Hers is still sitting at a healthy 151.53% YTD and a mind-melting 559.83% over the last 12 months. So yeah, there’s that.

Which means, it's no secret that investors love the idea of Hims and Hers expanding beyond just prescriptions. And while the company hasn’t disclosed how much they paid for Trybe Labs, the fact they are funding it with cash seems like a safe way to say they’re playing this smart—a.k.a. no reckless debt-fueled spending sprees here.

(Source: Giphy) 

In the end, Hims & Hers isn’t slowing down. They’re coming for Big Pharma, Big Diagnostics, and anyone else overcharging for healthcare. And if this move goes the way they think it will, Quest and Labcorp should probably start looking over their shoulders. For now, keep an eye on the stock, and place your bets accordingly, friends. As always stay safe and stay frosty—Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.