Hims & Hers, a telehealth platform targeting millennials, announced the addition of Kåre Schultz to its board of directors on Monday. Schultz, a former executive at Novo Nordisk with over 25 years of experience, is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “This is the first company I have seen that is leveraging today’s modern tools to truly break down barriers and change the status quo of how people access the health solutions they need to live their fullest lives.”
Following the announcement, Hims & Hers stock experienced a 3% increase in morning trading, reflecting a remarkable 125% rise since the start of the year.
The appointment comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, which are both developed by Novo Nordisk. Hims & Hers prices a month’s supply of this weight loss medication at $199, significantly lower than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349 cost.
Amid a shortage of these popular drugs, various telehealth platforms are utilizing a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications that are in short supply. Compounding allows licensed pharmacists or physicians to tailor medications to meet the unique needs of patients.
Although the Food, Drug, and Cosmetic Act typically bans the compounding of drugs that replicate already commercialized products, the FDA does not classify drugs in shortage as commercially available. Schultz noted in an interview with Bloomberg that he sees a “long future” for the sale of compounded semaglutide. When asked about the viability of compounded semaglutide after shortages are resolved, Schultz remained optimistic, citing ongoing cases where patients may require personalized prescriptions.