Hyperice Targets Weekend Warriors With New Version Of Injury-Recovery Device Favored By NBA Stars

In September 2019, Gilad Jacobs, the CEO of Normatec, a maker of devices that help athletes heal from injury, and Anthony Katz, founder of a similar company called Hyperice, were having their usual weekly conversation about the business trends and the latest technology in their industry when they both paused, realizing at the same time they were having the wrong discussion.

“Literally,” Jacobs told Forbes, “almost at the same time, we were like, ‘What are we doing? What do you think about this? Do you want to explore what would this look like?’”

The new topic: how Hyperice could acquire Normatec and its $1,700 air compression leg recovery device, used by top athletes like LeBron James and Kevin Durant, and make it more accessible to the everyday consumer.

“We just started talking and it took off from there,” Jacobs said.

More than two years after the roughly $100 million acquisition in 2020, Hyperice is unveiling what it calls the “first-of-its-kind” device, the Normatec Go, a mobile version of air compression tech that will cost $399. That’s less expensive than the larger, stationary Normatec 3, which goes for roughly $800.

Hyperice CEO Jim Huether told Forbes that Normatec Go targets the same calf-muscle recovery and is more convenient.

“It’s going to be a pretty big evolution,” Huether said. “We always say we aspire to be a combination of a Tesla, Apple and Dyson. And then,” he added, “with a little mix of Nike, Adidas.”

Hyperice inches closer to $1 billion

Irvine, California-based Hyperice, launched in 2012, specializes in devices that help athletes recover from injury faster. Its products include percussion massage devices, vibrating rollers and cooling and heating pads. Hyperice estimates it’s worth $850 million following a $40 million funding round in 2021. That’s up from a $700 million value the year before, when it raised $48 million. Huether told Forbes that income has tripled since 2019, when Hyperice made about $100 million, according to Pitchbook. That’s up from $10.6 million in 2018.

The compression therapy devices market is projected to reach nearly $4 billion by 2026, according to research company MarketsandMarkets.

Athletes who’ve invested in Hyperice include tennis star Naomi Osaka, Kansas City Chiefs quarterback Patrick Mahomes, Phoenix Suns’ Chris Paul and Ja Morant of the Memphis Grizzlies.

Normatec was founded in 1998 by Jacobs’ mother, Dr. Laura F. Jacobs, who served as chief of physical medicine and rehabilitation at Cooper University Hospital in Camden, New Jersey. She developed the device to help breast cancer patients with poor blood circulation post-surgery. Air compression devices are often wrapped around a patient’s calf post-surgery to prevent pulmonary embolism, or blood clots that travel to the lungs from the leg. It’s a condition that ended the career of National Basketball Association Hall of Famer Chris Bosh following the 2016 season.

“Most people just think of the heart and the arteries” when it comes to blood circulation, says Jacobs. “But, in terms of what actually is moving things in the body – the calf is very important.”

In November 2020, Hyperice lured the National Football League as an equity investor through a sponsorship deal. The company also has an in-game sponsorship deal with the NBA.

Huether told Forbes that Hyperice has 5,000 confirmed orders as it approaches market launch. “The more people understand the science and what the products are doing to the body,” said Huether, “the more utility there is in the products and the more demand we can create.”

Even with a new product and price, convincing the everyday consumer to spend $399 during an inflationary period will be a challenge for Hyperice. Huether admitted that parts of the business have been impacted in 2022 as retailers get “conservative with inventory purchasing” due to consumers’ tightened spending. Hyperice has distribution deals with over 60 companies including Bloomingdales, Nordstroms, Best Buy and Target.

Still, Huether said he was optimistic about Hyperice’s outlook, citing diverse revenue lines that include vendor agreements with U.S. army bases and the U.S. Navy SEALs to provide tech around its compression pump.

“We have the hardware,” he said. “We’re building software. Our innovation pipeline is stronger than ever.”