Oddity Launches Telehealth Skincare Platform Methodiq

Il Makiage parent company Rarity is diversifying into medical-grade skincare with its new brand Methodiq, as the online retailer looks to compete with he and help address what he called a “broken health care system.”

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

Methodiq combines Oddity's investments in biotechnology, AI-based computational imaging and digital retail. It will allow the company to gain a piece of the burgeoning medical skin care market, which is expected 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 acne medications and other prescriptions through a telehealth platform. The release indicates that Oddity could delve deeper into healthcare in the future.

“We have these 60 million users on our platform. We know a lot about them. About half of them have some combination of acne, eczema and hyperpigmentation. Many of them, obviously, we already provide Il Makiage complexion products or corrective foundations. We've never had the opportunity before… to really treat the condition,” said Oddity CFO Lindsay Drucker Mann. “That's why dermatology is an obvious starting point for us. From there, there are many other medical domains we can expand into.”

Oddity, which will announce third-quarter 2025 results on Wednesday, has not included Methodiq in its 2025 or 2026 revenue outlook, primarily because it expects sales to represent only a small portion of total revenue, Drucker Mann said. However, he said the brand has “huge revenue potential in the future,” especially if Methodiq expands beyond medical skin care.

He noted Hims' goal of reaching $6.5 billion in annual revenue by 2030 and said it shows “the size of what can be done with a successful telehealth platform.”

Still, the strategy is not without challenges. Pharmaceuticals are heavily regulated, the sector is becoming more competitive, and it is difficult to gain customer trust.

Additionally, telehealth platforms can be difficult to scale safely. In March, The Wall Street Journal published an investigation into Hims that showed how some patients experienced serious side effects after taking the company's hair loss medications. Most patients said they did not realize the medications could have such side effects, while others felt they had not been adequately warned.

The publication found that unlike drug makers, telehealth companies are not required to disclose side effects and other risks in ads.

Oddity's investments in computational imaging and biotechnology are coming to life at 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 technology units. Two years later, it acquired biotech startup Revela and created Oddity Labs. The unit has been working to create new molecules with artificial intelligence that can be used in its cosmetics brands and future lines.

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

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

Kits may include widely available standard acne medications, such as the oral antibiotic doxycycline, but also novel acne cream approaches.

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

CNBC tested the product at Oddity's headquarters in New York City earlier this month and found that both the texture and smell were different from generic tretinoin cream dispensed in pharmacies. While the generic was white and sticky, the Clindalaq was smooth and blended into the skin without leaving a visible residue. It didn't smell like medicine either.

“We can offer these very potent acne-fighting ingredients, but in a formulation that is tolerable and can help actively combat side effects all in one,” said Alex Kaplan, vice president of product development at Methodiq. “What we can offer is a true beauty experience in a prescription formula.”

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

According to the American Academy of Dermatology, at least 50 million Americans are affected by acne and nearly 1 in 10 have the most common form of eczema, atopic dermatitis. However, there are no dermatologists 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. methodical CEO Tom Amsterdam said a doctor will review each patient's intake, recommend products and then stay connected with the patient throughout the treatment.

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

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

Dr. Amy Wechsler, a board-certified dermatologist based in New York City who is not related 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 health care 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 knows the medications they are prescribing, including proper use, potential side effects, and when a patient should be referred to a dermatologist.”