Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the appointment of Kåre Schultz, a former longtime executive at Novo Nordisk, to its board of directors. Schultz has over 25 years of experience at the Danish pharmaceutical company, where he held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his 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.” He noted his excitement to contribute to the company’s mission.
The announcement positively impacted Hims & Hers stock, which rose 3% during Monday morning trading and has increased by 125% since the start of the year.
This development follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is offering a month’s supply of this weight loss medication for $199, significantly undercutting the nearly $1,000 list price of Ozempic and the $1,349 cost associated with Wegovy.
The limited availability of these brand-name drugs has allowed various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to fulfill specific patient needs.
While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that are simply copies of commercially available products, the FDA does not classify drugs in shortage as commercially available. Schultz mentioned in an interview with Bloomberg that Hims & Hers sees a promising future in the sale of compounded semaglutide, indicating that even after shortages are resolved, there will still be patients who require customized prescriptions.