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  "docSlug": "747988e81365",
  "documentTitle": "Hims & Hers Health, Inc. (HIMS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-07-13 00:00:00",
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  "pageNumber": 56,
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  "notes": "Uses a table to contrast CEO quotes against actual performance metrics to highlight a broken promise.",
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      "kind": "callout",
      "text": "HIMS came up woefully short of its goal of 100% of fulfillment through affiliated pharmacies by year-end 2022. As of Q1 2023, over 60% of orders were fulfilled in-house, with the goal of 80%+ by year end 2023.",
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      "kind": "metric",
      "text": "fulfillment percentage: 60%",
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      "kind": "paragraph",
      "text": "HIMS fulfills orders through both “affiliated” and “partner” pharmacies. Much like the physician entities, the affiliated pharmacies are not directly owned by HIMS in order to comply with state regulations. The affiliated pharmacies include two Arizona compounding facilities added through the Apostrophe acquisition and an Ohio fulfillment facility launched in 2020. In addition, the Company relies heavily on third-party partner pharmacies. In its 2022 10-K, HIMS disclosed Truepill (PostMeds), Curexa (EHT Pharmacy), and ITC Compounding Pharmacy as its primary partner pharmacies. In addition, past filings disclosed Fareva and Absorption Pharmaceuticals as suppliers. HIMS speaks frequently of its desire to reduce its reliance on outside suppliers, and for good reason. Major partner Truepill is under DEA investigation related to its distribution of controlled substances for troubled mental health company Cerebral and has undergone massive layoffs over the past year. Moreover, we find that its major partner pharmacies have a track record of FDA and EPA violations which, in at least one case, were potentially injurious to customer health. Despite these issues, HIMS' efforts to in-source seem to be plateauing, meaning that operational risks are likely to persist.",
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      "kind": "quote",
      "text": "“... nearly 50% of our order volume is now being fulfilled out of our Ohio pharmacy and fulfillment center...I'm excited to share by year-end 2022, we believe nearly 100% of our services and treatments will be filled via our verticalized infrastructure, further unlocking efficiencies and capabilities consumers are looking for.” — CEO Dudum on Q2 2021 Earnings Call",
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      "kind": "source-note",
      "text": "Source: HIMS Q2 2021 Earnings Call Transcript, HIMS Q1 2022 Earnings Call Transcript, HIMS Q2 2022 Earnings Call Transcript, HIMS Q4 2022 Earnings Call Transcript",
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      "kind": "table",
      "text": "HIMS Commentary On Insourcing Efforts and Progress",
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      "kind": "title",
      "text": "The HIMS Pharmacy Operation Remains Reliant On Third Parties That Present Serious Business And Reputational Risks",
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      "evidence": "The document presents numerous contradictions and issues with HIMS' business model, operations, and financials",
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