Il Makiage parent Oddity takes aim at Hims with new telehealth skincare platform Methodiq

Il Makiage parent company Oddity is branching out into medical-grade skin care with its new brand Methodiq, as the online retailer looks to compete with Hims and help to address what it called a “broken medical care system.” 

Methodiq, which has been in the works for four years and launched on Tuesday, is a telehealth platform that will offer 28 new products, including creams, supplements and cosmetics, that address acne, hyperpigmentation and eczema. The lineup is a mix of prescription and over-the-counter items that range in price from about $29 to around $59. 

Methodiq combines Oddity’s investments into biotechnology, AI-based computational imaging, and digital retailing. It will allow the company to gain a slice of the burgeoning medical skin care market, which is projected to reach $113 billion this year, according to Research and Markets. 

The company’s expansion into medical skin care takes direct aim at Hims, which offers popular anti-acne medications and other prescriptions through a telehealth platform. The launch signals Oddity could move deeper into health care in the future. 

“We have these 60 million users on our platform. We know a lot about them. Around half of them have some combo of acne, eczema, hyperpigmentation. We serve a lot of them, obviously, already with Il Makiage complexion products or foundation concealer. We’ve never had the opportunity before … to actually treat the condition,” said Oddity finance chief Lindsay Drucker Mann. “That’s why dermatology is an obvious starting point for us. From there, there’s many other medical domains for us to expand into.” 

Oddity, which is set to announce 2025 third-quarter results on Wednesday, hasn’t included Methodiq in its 2025 or 2026 revenue outlooks, primarily because it expects sales to make up only a small portion of overall revenue, said Drucker Mann. However, she said the brand has “enormous revenue potential in the future,” especially if Methodiq expands beyond just medical skin care.

She pointed to Hims’ goal of reaching $6.5 billion in annual revenue by 2030 and said it shows “the size of what you can do with a successful telehealth” platform. 

Still, the strategy doesn’t come without challenges. Pharmaceutical products are heavily regulated, the sector is becoming more competitive and customer trust is hard to win.

Plus, telehealth platforms can be difficult to scale safely. In March, The Wall Street Journal published an investigation into Hims showing how some patients experienced serious side effects after taking hair loss medication from the company. Most of the patients said they didn’t realize the drugs could come with those side effects, while others felt they weren’t adequately warned.

The publication found unlike drugmakers, telehealth companies aren’t required to disclose side effects and other risks in advertisements.

Oddity’s investments into computational imaging and biotechnology are coming to life in Methodiq. 

In 2021, it acquired Voyage81, a deep tech AI-based computational imaging startup that was co-founded by the former head of research and development for one of the Israel Defense Forces’ elite technological units. Two years later, it acquired biotech startup Revela and created Oddity Labs. The unit has been working to create brand-new molecules with artificial intelligence that can be used in its cosmetics brands and future lines.

Voyage81’s imaging capabilities and the new molecules from Oddity Labs are both part of the Methodiq platform. 

When consumers join Methodiq, they fill out information about their skin concerns and undergo a facial scan, which maps out their face and determines what conditions, if any, they have. A medical doctor then reviews the information and recommends a suite of products that patients receive in a “kit” at regular intervals. 

The kits can include widely available standard acne medication, such as the oral antibiotic Doxycycline, but also fresh approaches to anti-acne creams. 

For example, Methodiq’s Clindalaq product contains tretinoin, a prescription-strength topical retinoid used to treat acne and other skin concerns, but also a mix of other ingredients that aim to make it more desirable to consumers than the standard creams prescribed by doctors. It includes hydrocortisone to alleviate side effects associated with strong retinols, as well as aloe vera extract and vitamin E to make the product more hydrating. 

CNBC tested the product at Oddity’s New York City headquarters earlier this month and found both the texture and smell was different from the generic tretinoin cream dispensed by pharmacies. While the generic was white and gloopy, the Clindalaq was smooth and blended into the skin without leaving a visible residue. It also didn’t have a medicinal smell. 

“We’re able to deliver these very strong acne-fighting ingredients, but in a formulation that’s tolerable and can help actively fight side effects all in one,” said Alex Kaplan, Methodiq’s vice president of product development. “What we’re able to deliver is a true beauty experience in a prescription formula.” 

Oddity is expanding into medical skin care in part because plenty of people need it but don’t always have access to a dermatologist, opening up a significant market opportunity. 

At least 50 million Americans are affected by acne and nearly 1 in 10 have the most common form of eczema, atopic dermatitis, according to the American Academy of Dermatology. However, there’s no dermatologist at all in more than 60% of U.S. counties, according to a 2018 study published in JAMA Dermatology. 

Methodiq aims to address that need by providing access to medical professionals and products that combat common skin concerns. Methodiq CEO Tom Amsterdam said a clinician will review every patient intake, recommend products and then stay connected with the patient through the entire course of the treatment.

While the platform isn’t set up to handle video or voice telehealth sessions between patients and doctors, patients can stay in touch with their doctor through a chat function where they can update them on their progress and adjust their treatment plan as needed. 

All of the doctors will be based in the U.S., but not all of them will be board certified in dermatology, said Amsterdam. 

Dr. Amy Wechsler, a board-certified dermatologist based in New York City who is not connected to Methodiq, said having a wide range of doctors on staff to prescribe treatments can help increase access to care.  

“In many parts of the country, patients do not have easy access to a dermatologist, which is why pediatricians, internists and other healthcare providers step in to prescribe treatments for acne, hyperpigmentation, and eczema,” Wechsler said in an email to CNBC. “This can be safe as long as the provider is knowledgeable about the medications they’re prescribing, including proper use, potential side effects, and when a patient should be referred to a dermatologist.”