Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz to its board of directors. Schultz has had a notable career, spending over 25 years at Novo Nordisk, a company recognized for its diabetes and obesity treatments, and he currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz praised Hims & Hers for its innovative approach to healthcare, 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 health solutions.” He expressed excitement about joining the company on its journey to transform healthcare.
Following the announcement, Hims & Hers saw a 3% increase in stock price during morning trading, with shares up 125% since the year’s start.
The announcement comes shortly after Hims & Hers began offering customers a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, which are produced by Novo Nordisk. The telehealth company is selling a month’s supply of the weight-loss medication for $199, significantly lower than Ozempic’s nearly $1,000 and Wegovy’s $1,349 list prices.
The ongoing shortages of these sought-after medications have prompted several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to cater to the specific needs of individual patients.
While the act typically prohibits the compounding of drugs that are simply replicas of commercially available medications, the U.S. Food and Drug Administration (FDA) does not consider drugs in shortage to be commercially available.
Schultz conveyed to Bloomberg on Monday that he sees a promising future for the sale of compounded semaglutide. When questioned about the ability of pharmacies to continue making compounded semaglutide after the shortages end, Schultz expressed confidence, noting that there would still be situations where patients require personalized prescriptions.