Hims & Hers Health shares advanced by nearly 18% after the company said it has acquired at-home lab testing provider Sigmund, or Trybe Labs, allowing it to offer at-home blood testing.

The company acquired Trybe Labs, an at-home testing facility in New Jersey. The facilities will allow Hims to test blood samples sent through the mail. The company says that the at-home testing "will empower customers to take control of their health with deeper insights" and "help identify risk of disease before it develops."

The testing will help Hims & Hers more readily offer a wider array of treatments, supplements, and medications for ailments that require blood work to be diagnosed, eliminating the need for customers to visit a blood lab.

Removing this friction will likely lead to customer growth and higher treatment rates for "high impact" -- read: lucrative -- clinical categories like low testosterone and menopausal support.

Hims & Hers' stock has been on quite a run, up more than 600% in the last year. The company is firing on all cylinders and seems to have proven the model works. However, there is reason to be cautious. With a price-to-earnings ratio of 160, the stock is expensive. Given its current growth pattern, that valuation wouldn't be entirely unreasonable, but that growth is in danger of slowing down considerably.

At present, Hims & Hers and other telehealth companies are able to sell compounded GLP-1 drugs to patients -- essentially generic versions of drugs like Ozempic. Here's the catch: These drugs are still under patent. The FDA is allowing Hims and its competitors to do this temporarily due to a shortage, and it is entirely possible that this critical revenue stream will disappear in the not-so-distant future.