Hims & Hers, a telehealth platform focusing on millennials, announced on Monday the addition of Kåre Schultz, a former long-time executive at Novo Nordisk, to its board of directors. Schultz, who has over 25 years of experience at the Danish pharmaceutical company known for its diabetes and obesity treatments, previously held positions as president and chief operating officer and currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about 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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers’ stock rose by 3% during morning trading, and shares have seen a 125% increase since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is providing a month’s supply of the weight loss drug for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The limited availability of these expensive brand-name drugs has encouraged various telehealth platforms to exploit a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding involves tailoring an approved drug by a licensed pharmacist or physician to fulfill an individual patient’s specific needs.
Typically, the Act restricts the compounding of drugs that are mere replicas of commercially available versions. However, drugs deemed to be in shortage are not classified by the U.S. Food and Drug Administration (FDA) as commercially available.
Schultz informed Bloomberg on Monday that Hims & Hers has a “long future” in offering compounded semaglutide. When questioned about the capability of pharmacies to produce compounded semaglutide after shortages resolve, Schultz expressed confidence, reiterating that there will still be situations where patients require personalized prescriptions.