As Hims & Hers Health adapts to the recent crackdown on copycat weight-loss medications, the company is looking abroad for its next growth opportunity. On Tuesday, the online healthcare retailer announced a deal to acquire Zava, a private European telehealth provider with operations in the U.K., Germany, France, and Ireland.
Much like Hims, Zava offers online prescriptions and treatments for conditions such as erectile dysfunction and hair loss. While the financial details of the acquisition were not disclosed, the move signals Hims’ intent to establish a stronger foothold in Europe.
This expansion comes at a pivotal time. Earlier this year, Hims’ valuation soared to over $15 billion—up from under $2 billion in early 2024—largely fueled by its ability to sell low-cost, compounded versions of Novo Nordisk’s GLP-1 weight-loss drug, Wegovy. But that momentum stalled after the U.S. Food and Drug Administration barred compounding pharmacies from producing such knockoffs in late May.
With those sales cut off, Hims is shifting its focus. The company’s stock rose 14.7% Tuesday morning and is up more than 170% so far this year.
Founded in 2011, Zava serves 1.3 million active customers, according to Hims. That compares with the 2.4 million subscribers Hims reported as of March 31. The acquisition is expected to accelerate Hims’ international rollout and broaden its customer base outside the U.S., where growth prospects are slowing.
Still, analysts voiced early skepticism about the deal. Bank of America analyst Allen Lutz noted that expanding internationally while the core U.S. business decelerates could be risky and may signal saturation and intensifying competition at home. Leerink Partners’ Michael Cherny added that previous attempts by healthcare companies to break into European markets have often faced regulatory challenges and missteps.
Hims said it plans to use Zava’s infrastructure to introduce Hims-branded services across its European footprint. Although Hims already operates in the U.K., the company plans to grow those efforts significantly.
Despite the regulatory setback, Hims is holding firm on its ambitious financial goals. The company projects revenue of $2.3 billion to $2.4 billion in 2025, up from $1.5 billion in 2024.
In April, Hims secured a deal with Novo Nordisk to sell branded Wegovy at a discount. However, competition in that space is intense, and Hims’ pricing for the drug is reportedly higher than some rivals, including Novo’s own NovoCare pharmacy.
The company also aims to offer more personalized treatment options, integrating lab testing and customized compounding. While expanding internationally may increase its total addressable market, some analysts warn it could also add unnecessary complexity.
“Hims’ U.S. business is already navigating several challenges, from a slowing base to the end of compounding and the rollout of branded GLP-1 treatments,” Cherny wrote. “Layering on a multinational digital health platform may stretch the company’s resources even further.”
