Hims & Hers Health, Inc. (NYSE:HIMS) Q2 2023 Earnings Call Transcript

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Andrew Dudum: Thanks George, great question. I think you’re exactly right. This is one of the first categories I think that we’re launching into where it requires a coalition of outside collaboration. It requires deep integration of kind of predictive analysis in the consultation flow to be able to identify patients at risk. It involves third-party partnerships such as the one we announced with Labcorp to be able to gather that data set in a way that can more completely allow providers to identify these patients at risk and then actually treat them. I think the infrastructure that we put in place with this launch is one that can be replicated quite easily actually. And I think replicated in most of the remaining categories from a health care system standpoint that play in the country that we are not in.

So this could be metabolic disorders. This could be insulin-resistant disorders. This could be diabetes. This could be things like menopause and hormonal balancing. We’ve already obviously spoken quite a bit about weight management. But I think a lot of the chronic conditions that the business has yet to launch into have similarities in the diagnosis the validation and then the ongoing treatment relationship with patients as the launch of Heart Health by Hims. And so that I think is a template for us that we believe in the coming years can be replicated. We think it’s a really innovative platform given the simplicity for customers the ease of it, the leveraging of other categories that a patient might be more interested in learning about, but then the ability to diagnose and treat those patients for possibly even riskier conditions they were unaware of.

And then ultimately that innovation on the pharmacy side to deliver a personalized treatment and even in this situation a single pill treatment with a multi-category benefit. We think that’s going to massively improve adherence and engagement and retention and truly value for these patients. So I’ve said this from the beginning, I think, the business is capable of attacking upwards of 70% or 80% of the traditional health care system. I think more and more as these third-party integrations whether it’s through Labcorp, or through diagnostic testing at-home, or through tracking systems on the individual, or Apple watches, et cetera, you’ll be able to more sophisticatedly treat these patients on the go and leveraging truly best-in-class clinical guidelines at the platform level, and then offer a really data-oriented and ML capabilities to better prescribe and diagnose and treat these individuals.

So I think that’s where we’re running towards. We mentioned we filed a number of provisional trademarks around the name MEDMATCH and are going to be sharing a lot of that AI technology in the next quarter. But a big part of this is the ability to predict the diagnosis and the appropriate treatment to help providers make more informed and clinically appropriate decisions.

Yemi Okupe: And then George at the back half of your question the $12 million to $18 million range exclusively correlates to pricing. Effectively that is the impact of repricing the majority of the existing base that are already on some of those SKUs with the updated pricing and as those folks start to renew, they will get the updated pricing. There will be some mitigation just from new users starting to select a different mix of products that we expect will skew more towards the personalized and longer duration offering as well as the continued upgrades for some of the existing users that are switching from generic solutions or shorter duration solutions in the back half of the year.

George Hill: Okay. Maybe just a quick follow-up here. Yemi did you — are you guys willing to communicate kind of like what’s the net impact of the price customer percentage perspective? Like what’s the price markdown on the hair products?

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