The news: Direct-to-consumer (D2C) telehealth startup Remedy Meds is acquiring competitor Thirty Madison in an all-stock deal valued at over $500 million.

• Thirty Madison launched 8 years ago and expanded into several healthcare areas, including men's hair loss (Keeps), women's health (Nurx), and migraines (Cove). But it has also discontinued other ventures, such as the skincare brand Facet and allergy treatment brand Picnic.
• Remedy Meds, founded just last year, specializes in compounded weight loss drug prescriptions accessed via telehealth.

Why it matters: Acquiring Remedy gives Thirty Madison a much-needed boost by entering the potentially lucrative compounded GLP-1 drug market.

Unlike some competitors, Thirty Madison was slow to join the weight-loss drug trend. While its Nurx brand prescribes GLP-1s, it doesn't offer the more affordable compounded versions. Thirty Madison generates about $220 million in annual revenue, but its valuation has dipped from a peak of $1 billion in 2021.

Conversely, Remedy’s business is surging, with $450 million in revenues forecasted for 2025, up from $50 million in sales in its first year, per Axios. This growth is largely driven by the high demand for its compounded weight-loss drugs, which cost ~$200 per month. That is significantly cheaper than the branded versions without insurance. Despite being a new company, Remedy has quickly become a leader in the compounded GLP-1 space, thanks to positive online reviews.

Our take: By adding affordable weight-loss drugs to its men's and women's health treatments, the newly combined company will directly compete with Hims & Hers and Ro.

However, their larger customer base will likely draw the attention of GLP-1 drug manufacturers like Novo Nordisk and Eli Lilly. Both pharma companies are actively trying to shut down the market for compounded weight-loss drugs. Transparent marketing and staying on top of potential regulatory changes to compounded GLP-1 allowance will be key to sustaining customer loyalty.

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