Teledermatology Platforms Are Making Prescription Skin Care Accessible

Changes are afoot in the teledermatology space.

As Hims & Hers shutters Apostrophe, the teledermatology specialist it acquired in 2021 for $190 million, others are forging ahead and experts still appear to be bullish on the growing category.

All Apostrophe subscriptions were canceled with immediate effect Friday, but Hims & Hers, the near $1.5 billion telehealth company, will still maintain its dermatology sector, which includes customized solutions for acne, fine lines and other skin concerns. 

“After careful consideration, we are discontinuing Apostrophe to simplify our dermatology products and operations into one seamless experience for our customers and our continued focus to provide customers with access to the most effective care,” a Hims & Hers spokesperson said.

Nevertheless, sources said the decision to shutter Apostrophe shouldn’t be a major indicator of the category at large. 

“This is more indicative of how important GLP-1 [weight loss drugs] probably are to their future strategy,” said founder of Wellness Growth Ventures Rachel Hirsch. “The past year, the numbers that Hims & Hers did on GLP-1s was so far ahead of any expectation, and has become such a source of their business that even if other business lines are profitable, it’s probably not worth them investing in.” 

In addition, with the FDA changing guidelines and possibly prohibiting the compounding of weight loss drugs, some say Hims & Hers may need to focus on these ongoing changes in this area of its business. 

However, in the way of skin care, sources see this shift as an opportunity for another platform to take ownership of the category. 

“It creates opportunity because I don’t think the spending on derm skin care is going anywhere,” Hirsch said. “There’s a huge opportunity there.” 

According to McKinsey, the overall telehealth market could reach $250 billion, and some bankers predict that teledermatology, and prescription skin care in particular, could be a $10 billion opportunity — particularly given how expensive (and difficult) it can be to get an appointment with a dermatologist, many of whom don’t accept insurance.

“It can take months to get access to an office-based dermatologist,” said Intrepid head of healthcare Adam Abramowitz. “With some of these innovative telehealth models, they are able to make that wait time less than 24 hours.” 

That being said, industry sources advised not to follow in Apostrophe’s footsteps when it comes to the scope of its customer. 

“If you look at their business, it’s pretty much 95 percent just for acne, which is a young people problem,” a source told WWD. “The acne space is a $2 billion annual market [which hasn’t changed much year-over-year] in the U.S. for young people from 13 to 25… People keep banging their heads against this market that’s really only needed for young people.” 

Therefore, sources said to survive in this category, particularly with new entrants, broadening the offering will be crucial. 

“There is a huge market opportunity for telemedicine for older women and men,” said Jack Jia, founder of Musely, a prescription skin care site, which focuses primarily on the older consumer. 

While the teledermatology boom began with a focus on acne, many have since evolved to encompass an array of concerns like antiaging, hyperpigmentation, rosacea and more. This has led to an expansion of products across the sector’s top platforms.

Musely now offers topical solutions for a number of concerns, from facial hair removal creams to estrogen creams to antiaging products infused with exosomes.

The company is further differentiating itself by compounding products — giving it the ability to deliver personalized formulas that addresses a variety of issues. “We customize everything,” said Jia. “We do not sell pharmaceutical products or manufactured products.” 

To that end, the company could create a cream that combines acne and antiaging actives or added ingredients that can mitigate side effects, for example. 

Curology, one of the original telehealth skin care companies which now has sales of $200 million, has taken a similar approach when it comes to customizing formulas.

“There are thousands of brands and options, and every time you turn around, there’s something new. What’s unique about our model is that we combine the care from a licensed dermatology provider with products [that] are personalized,” said Curology chief executive officer Heather Wallace. “The reason for that personalization is that everybody’s skin is different… Acne can be hormonal. It can be bacterial. There can be other challenges, so we are able to match up a consumer with the right formula for them.”

Alloy, a menopause solution telehealth platform, is also doubling down on antiaging in the form of a new take on an ingredient that has recently been causing buzz: topical estrogen. Like Musely, it offers it own prescription-grade version, which claims to deliver firmer and plumper skin. 

“It’s been a blockbuster,” said Alloy cofounder Anne Fullenweider, noting that the addition of an estrogen-based face cream has helped the company’s skin care category grow 405 percent over the last year. “People love it.”

When it comes to antiaging, Curology has taken a slightly different approach. While the core brand focuses on acne, it has created a separate brand platform, Agency, to address antiaging solutions. 

“Curology has a strong foothold in the 13- to 24-year-olds. They’re usually category entrants, so the first skin care product that they’re buying is for acne,” said Wallace. “We felt that focusing solely on that population for Curology was the right thing to do.”

As it’s broadened its customer base with Agency, Curology has similarly aimed to increase its reach by launching over-the-counter products allowing it to expand into retail.

As the market continues to attract more customers, more players want in. Oddity, the parent company of Il Makiage and SpoiledChild, recently announced that it will launch a telehealth brand providing over-the-counter and prescriptions solutions in the latter half of 2025. 

“We will start with medical-grade skin and body issues like acne, eczema and hyperpigmentation and then expand to other health domains,” said Oddity CEO Oran Holtzman during a call with analysts. “Our offering includes a comprehensive and innovative product range and access to prescription and OTC treatments, enabling full personalization to user profiles, types and severities. Individual treatment plans can be updated and adjusted to minimize side effects and increase efficacy.”

While Lindsay Drucker Mann, Oddity’s chief financial officer, said that it may weigh on the gross margin as there’s higher cost of goods associated with doctor networks and compounding pharmacies, she stressed that “even with a lower gross margin profile, this is a business where we expect to have great frequency and repeat.”

With the ongoing growth and opportunity to target a larger cohort of consumers, aside from those experiencing acne, experts believe this will definitely be an M+A driver.

That being said, sources also say the proliferation of platforms will pose a challenge. 

“Now you have an increasingly competitive digital marketing environment plus increased competition in this specific space,” said Raymond James investment banking director Jonah Weisel, who oversees the over-the-counter and personal care practice. “The challenge is how do these companies stay disciplined on new customer acquisition… and continue building a brand where you have the ability to extend into other needs.”

However, with the news of Hims & Hers shuttering Apostrophe, industry sources say consolidation could be crucial. 

A source told WWD: “Maybe [these platforms] can capture more value and brand equity by streamlining.”