Hims & Hers, a telehealth company targeting millennials, announced on Monday the addition of Kåre Schultz to its board of directors. Schultz, who has extensive experience at Novo Nordisk, where he served for over 25 years, holds various roles including president and chief operating officer and is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, highlighting the company’s innovative approach to transforming access to healthcare solutions. He stated, “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 this announcement, Hims & Hers saw a 3% increase in stock prices during morning trading, with shares up 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the popular diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is providing a month’s supply of this medication for $199, a significant reduction compared to the nearly $1,000 for Ozempic and the $1,349 for Wegovy.
The shortage of these high-demand medications has prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications when shortages exist. Compounding involves creating a customized version of an approved drug by a licensed pharmacist or physician to cater to specific patient needs.
Generally, the Act restricts compounding drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not categorize drugs in shortage as commercially available. Schultz mentioned to Bloomberg that Hims & Hers has a promising future in offering compounded semaglutide and believes that individualized prescriptions will remain relevant even after the shortages are resolved.