Amazon is predicted to potentially acquire telemedicine company Hims & Hers Health to enhance healthcare services
From Nasdaq: 2024-12-27 05:07:00
Amazon (NASDAQ: AMZN) has diversified its business through acquisitions, including PillPack for $753 million in 2018 and 1Life Healthcare for $3.9 billion in 2023. The company has expanded into healthcare services, with Amazon Pharmacy offering various products. The next potential acquisition could be telemedicine company Hims & Hers Health (NYSE: HIMS), aligning with Amazon’s offerings.
Hims & Hers Health specializes in lifestyle and wellness products, similar to Amazon’s expanded pharmacy offerings. The company generates the majority of its revenue online through subscription-based services. This aligns well with Amazon Prime’s subscription model, offering potential synergies for both companies. The acquisition could enhance Amazon’s online pharmacy capabilities and provide steady, high-margin revenue.
Hims & Hers Health’s recent stock performance has seen fluctuations, influenced by trends in the weight loss market. The company offers compounded versions of medications like Ozempic, competing with Novo Nordisk and Eli Lilly’s blockbuster drugs. Changes in FDA regulations and drug shortages could impact Hims & Hers’ growth potential, making it a strategic acquisition target for Amazon to bolster its healthcare offerings.
While Amazon has not been identified as one of the 10 best stocks to buy now by the Motley Fool Stock Advisor team, potential acquisitions like Hims & Hers Health could drive future growth. With a history of successful acquisitions in the healthcare space, Amazon could capitalize on synergies between the companies to enhance its online pharmacy services and subscription-based revenue model.
Read more at Nasdaq: Prediction: This Will Be Amazon’s Next Big Acquisition