Hims & Hers Health (NYSE: HIMS) launched the Galleri multi-cancer early detection test on its Labs platform, pricing it at $250 — a 74% discount from the $949 list price. The test, developed by GRAIL (NYSE: GRAL), screens for signals from over 50 cancer types before symptoms appear.
HIMS by the Numbers
- Subscribers: ~2 million
- FY 2025 Revenue: Tracking ~$2B
- YTD Performance: +34%
- Labs Launch: November 2025
The cancer diagnostics market sits at $110B, projected to hit $199B by 2032 (7.7% CAGR). Blood testing overall: $98B → $160B. HIMS is positioning for both.
What is the Galleri Test?
A blood draw that analyzes cell-free DNA (cfDNA) for methylation patterns shared by cancers. It doesn't diagnose — it detects signals and predicts likely origin to guide follow-up imaging or biopsies.
Status: Lab-developed test (LDT). Not FDA-approved. GRAIL filed in 2025; decision expected 2026.
Targets: 50+ cancer types including pancreatic, ovarian, liver, and head/neck — cancers with no routine screening that account for two-thirds of U.S. cancer deaths.
Accuracy (Clinical Data)
| Metric | Value | What It Means |
|---|---|---|
| Specificity | 99.5% | Low false-positive rate (~1 in 200) |
| Overall Sensitivity | 40-51% | Catches about half of cancers |
| Stage I Sensitivity | 16.8% | Misses most early-stage |
| Stage IV Sensitivity | 90.1% | Strong for late-stage |
| Deadly Cancers Sensitivity | 67-76% | Better for high-mortality types |
| PPV | 44-62% | If positive, ~50% chance it's real |
| Origin Accuracy | 88-97% | Reliably predicts where cancer is |
Limitations
The numbers don't lie: 16.8% Stage I sensitivity means it misses most early, curable cancers. Critics argue it's not ready for mass adoption. A UK NHS trial paused in 2025 over performance concerns.
False negatives are common. Not all cancers shed detectable cfDNA. This complements standard screenings — it doesn't replace mammograms or colonoscopies.
No insurance coverage. The $250 HIMS price helps, but it's still out-of-pocket friction.
The Business Case
This isn't a pivot — it's vertical expansion.
HIMS started with hair loss and ED, added weight loss (compounded GLP-1s at $49/month), and now diagnostics. Each layer increases subscriber LTV and retention.
The model: Labs subscription ($99/month base) + add-on tests. Galleri becomes an annual recurring touchpoint. If the test flags something, HIMS can route into treatment pathways. That's revenue growth compounding on existing subscribers.
HIMS invested in GRAIL's $325M round last October. They have equity upside if Galleri succeeds.
The Demographic Bet
Galleri is recommended for ages 50+. HIMS' core audience is millennials and Gen Z. The bet: younger users buy peace of mind, and the platform matures with its user base over time.
Market Reaction
Stock: HIMS spiked to $28 premarket (+16%) on the announcement, then faded — closed down 3.3%. Classic "buy the rumor, sell the news." GRAL up 1.8%.
Bulls: "Full-stack healthcare platform." Recurring screening loop = retention. GRAIL's president called HIMS a "natural partner" for broader access.
Bears: Overreach concern — from "boner pills" to cancer screening is a brand stretch. Limited near-term revenue impact. Execution risk against established players like Exact Sciences (Cologuard).
Analyst consensus: Growth potential is real, but watch margins and FCF trajectory as Labs scales.
Super Bowl Push
HIMS is running a Super Bowl LX spot (February 8): "Rich People Live Longer" — a direct play on healthcare accessibility. Their 2025 Super Bowl ad focused on mental health.
High-profile marketing + discounted pricing = subscriber acquisition play. Whether it converts to durable free cash flow depends on retention metrics post-campaign.
Bottom Line
HIMS is building a full-stack digital health platform. Galleri adds a high-margin, recurring diagnostic layer to an already growing subscriber base.
The market opportunity is massive. The test's early-stage sensitivity is weak. FDA approval in 2026 could be a catalyst — or a setback if it stalls.
The strategy is coherent. Execution is everything.
HIMS