Hims & Hers to shut down dermatology business Apostrophe
March 7 (Reuters) - Hims & Hers Health (HIMS.N), opens new tab would discontinue Apostrophe, its personalized acne treatments dermatology business, the company said on Friday.
Apostrophe is being shut down to "simplify its (company's) dermatology products and operations into one seamless experience," Hims & Hers said.
The telehealth company, which also offers products for skin conditions such as wrinkles and fine lines, had acquired Apostrophe in 2021.
Hims & Hers will continue to provide other dermatology treatments.
A notice on Apostrophe's website also said the business is being discontinued and all current subscriptions will be canceled.
Shares of the telehealth firm closed 4.5% higher at $35.95 on Friday. The company's stock has plunged more than 45% since Novo Nordisk's (NOVOb.CO), opens new tab drug semaglutide, the active ingredient in its top-selling medicines Wegovy and Ozempic, was removed from the U.S. health regulator's shortage list on February 21.
Compounding pharmacies and telehealth firms such as Hims & Hers had been allowed to produce hundreds of thousands of doses of copies of weight-loss drugs Wegovy and Eli Lilly's (LLY.N), opens new tab Zepbound, only while the FDA said there was a shortage of them.
Without a shortage, compounders may not produce copies of the branded drugs regularly or in large amounts, according to FDA guidance. The regulator has given a grace period of 60 to 90 days to compounding pharmacies, starting the clock on unfettered market access for these drugs.
Hims & Hers has said it cannot guarantee the continuity of the products "in the same manner, to the same extent, or at all".
The company plans to continue the sale of personalized doses of the drug along with its nutrition and coaching plans. It said that the decision to wind down Apostrophe is unrelated and separate from its weight-loss drug business.
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