Hims & Hers, a telehealth platform focused on millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz has spent over 25 years with the Danish pharmaceutical company, where he held various leadership positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
Schultz expressed enthusiasm about joining Hims & Hers, noting its innovative approach to transforming healthcare access. “Hims & Hers is on a trajectory to upend the healthcare industry,” he stated. “In my long career in the pharmaceutical industry, 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 value increased by 3% during Monday morning trading and has risen by 125% since the start of the year.
This development coincides with Hims & Hers’ recent offer of a compounded version of semaglutide, the active ingredient found in popular diabetes and weight loss medications like Ozempic and Wegovy, both produced by Novo Nordisk. The telehealth platform provides a month’s supply of the weight loss medication for $199, significantly lower than the prices of its brand-name counterparts, which can reach nearly $1,000 for Ozempic and $1,349 for Wegovy.
The limited supply of these high-demand and costly medications has prompted several telehealth services to utilize a provision in the Food, Drug, and Cosmetic Act, allowing for the sale of compounded medication during shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet individual patient needs.
While the Food, Drug, and Cosmetic Act generally restricts compounding of drugs that are merely replicas of available medications, the FDA does not classify drugs in shortage as commercially available. Schultz informed Bloomberg on Monday that Hims & Hers sees a “long future” in offering compounded semaglutide, emphasizing that individual patient needs will continue to justify its availability even after shortages are resolved.