The Men’s Health Industry sets up as one of the most attractive growth market niches in the current bull market for several reasons.
Most importantly, it is a huge premise that has simply failed to cohere in recent cycles likely because of unconscious biases preventing most people from accepting the notion that men represent a target market worth approaching.
It’s a bit like fish struggling to see water or the painter failing to see the canvas. In a traditionally patriarchal social system, the last people you notice as a special interest group are the men. This shouldn’t be a controversial idea. After all, investing strategy supersedes any such notion. It either is or isn’t an opportunity. And if a theme has been ignored because it seems like a taboo point of focus, that’s all the more reason to suspect it is a very real opportunity, and that stocks attending the space are likely undervalued relative to their real-world potential.
Note, we are not at all suggesting that patriarchy is a good thing or that men need special treatment. The point is simply this: every other group, when defined along race, gender, and sexuality terms, has become a coherent target market. Men, in general, have only recently been noticed as being left out of this equation.
However, this slice of the demographic pie is likely the most robust in terms of consumption potential because, for the same reasons it might be seen as a controversial focus, there is a correlation with spending power, justified or not.
Only recently have we begun to see companies appear on the radar that are truly focused on this marketplace. And the upside for this group is truly special. We take a look below at some of the most interesting opportunities in this space, with special attention given to MGRX, where we see outsized potential in the best-case scenario due to its special marketing angle, how aggressive the company has been on the marketing side, and the fact that it now has a powerful commercial impact footprint in terms of currently available products as of this week.
Goodrx Holdings Inc (NASDAQ:GDRX) engages in the business of a consumer-focused digital healthcare platform. The firm offers consumers free access to transparent and lower prices for brand and generic medications, affordable and convenient medical provider consultations via telehealth, and comprehensive healthcare research and information.
GDRX offers strategic solutions for men’s healthcare and wellness options, along with its overall coverage of the prescription marketplace.
Goodrx Holdings Inc (NASDAQ:GDRX) recently announced its financial results for the second quarter 2023, including total revenue of $189.7 million, exceeding previously announced guidance. net income of $58.8 million1; Net income margin of 31.0%, and adjusted EBITDA2 of $53.5 million.
“I’m encouraged by the progress made during the second quarter,” said Scott Wagner, Interim Chief Executive Officer. “We exceeded our Revenue and Adjusted EBITDA expectations with prescription transactions revenue and volume returning to year-over-year growth. We expanded the number of direct contracts we have with pharmacies, announced an exciting new program with CVS Caremark, and continued to align our teams and people against our biggest opportunities. Looking ahead, we are focused on rebuilding momentum in the business financially and operationally with an eye toward compounding growth in 2024 and beyond.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action GDRX shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -9% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -4%.
Goodrx Holdings Inc (NASDAQ:GDRX) managed to rope in revenues totaling $189.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -1.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($762M against $82.6M).
Mangoceuticals Inc (NASDAQ:MGRX) is another up-and-coming growth name in the space. In fact, as we noted in the introduction and the title, MGRX occupies a potentially special place in this overview because the company has established a special marketing perspective. With men, in a traditional sense, that’s critical.
As far as we can tell, MGRX may be the only name in the space that has cracked this code–eliminating the taboos and finding a direct path between identifiable demand and well-designed solution.
Mangoceuticals Inc (NASDAQ:MGRX) recently announced it has officially launched its newest erectile dysfunction product (what the company likes to call an “erectile function product”). This one leverages the Company’s existing custom compound alongside Sildenafil, the active ingredient found in Viagra™.
According to the company’s release, interested consumers can now proceed through the Company’s telemedicine platform and select either a Sildenafil-based Mango or the Company’s original Tadalafil-based Mango ED product, which leverages the active ingredient found in Cialis™. Both the Sildenafil and Tadalafil-based Mango ED products are compounded with Oxytocin and L-Arginine in a tasty Mango-flavored rapid dissolve tablet (RDT) and individually packaged in a master pack of six tablets per package.
“With the launch of our new Sildenafil-based Mango ED product, we are now able to harness the power of the two most popular and successful erectile dysfunction drugs developed over the past two decades and pair them with our own proprietary formulation in a faster-acting, better-tasting ED solution,” remarked Jacob Cohen, CEO and Co-Founder of MangoRx. “Each of these compounds has already cultivated its own sizeable following and both can be effectively integrated into our proprietary blend and delivery mechanism.”
Management notes that Tadalafil and Sildenafil each have their own unique properties, which can lead to different manifest effects among users. For example, Tadalafil has been proven to last longer than Sildenafil due to a half-life more than four times as long. At the same time, Sildenafil may reach full efficacy faster than Tadalafil.
Mangoceuticals Inc (NASDAQ:MGRX) CEO Cohen added, “Perhaps the most important point here is that we are standing on the shoulders of billions of dollars of prior marketing spend. And we have spent the past 6 months building a huge marketing footprint of our own through our investments in high-traffic, high-relevance podcasts and other highly visible media appearances, interviews, and ads, as well as our own viral marketing and advertising efforts. Now we can pair this visibility with a stable of currently available market-leading products to drive strong sales growth in the second half of the year.”
Hims & Hers Health Inc (NYSE:HIMS) operates a telehealth consultation platform. It connects consumers to healthcare professionals, enabling them to access medical care for mental health, sexual health, dermatology and primary care.
The company bills itself as is the leading health and wellness platform on a mission “to help the world feel great through the power of better health.”
Hims & Hers Health Inc (NYSE:HIMS) recently announced reported financial results for the second quarter ended June 30, 2023. “This quarter marks a significant turning point for Hims & Hers, where step-change progress was made in transforming our company from an access-oriented company, towards a platform offering a personalized patient experience,” said Andrew Dudum, co-founder and CEO. “The capabilities that we have spent years building allow us to offer unique and differentiated products across our current categories, as well as seamlessly enter new categories such as Cardiovascular Health and Weight Management. These are some of the most commonly occurring and emotionally resonant conditions, and by addressing them, we are one giant step closer towards having the ability to improve the life of every individual in the world.”
“We are excited by the progress made this quarter, which we believe sets that foundation for long-term growth at an attractive margin profile through distinct competitive advantages,” said Yemi Okupe, CFO. “Our economic flywheel is clearly working. It has enabled us to strategically bring highly sought after personalized products to very attractive price points, and simultaneously expand margins. We believe this uniquely positions us for significant market share gains.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action HIMS shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -4% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -21%.
Hims & Hers Health Inc (NYSE:HIMS) managed to rope in revenues totaling $207.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 83.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($193.1M against $66.5M).
Other names in the space include Pfizer Inc. (NYSE:PFE), Teladoc Health Inc (NYSE:TDOC), and American Well Corp (NYSE:AMWL).
