Hims & Hers, a telehealth platform catering to millennials, announced on Monday the addition of Kåre Schultz to its board of directors. Schultz, a veteran executive from Novo Nordisk, where he spent over 25 years, including roles as president and COO, currently leads Teva Pharmaceutical as CEO.
In a press release, Schultz expressed enthusiasm for joining 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.” He believes the company is poised to make significant changes in the healthcare industry.
Following the announcement, Hims & Hers saw a 3% rise in its stock price during morning trading, marking a 125% increase since the start of the year.
The news comes shortly after Hims & Hers began offering a compounded form of semaglutide, the active ingredient in popular diabetes and weight-loss medications Ozempic and Wegovy, both produced by Novo Nordisk. The telehealth platform is selling a month’s supply of this weight-loss medication for $199, significantly lower than the almost $1,000 price for Ozempic and $1,349 for Wegovy.
The surge in demand for these brand-name medications has led several telehealth platforms to utilize an allowance in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in shortage. Compounding refers to the customization of an approved drug by a licensed pharmacist or physician to meet specific patient needs.
Typically, the act inhibits the compounding of drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz mentioned that the company has a “long future” planned for selling compounded semaglutide. When asked about the potential for pharmacies to continue making compounded semaglutide after shortages are resolved, Schultz expressed confidence that individualized prescriptions would still create demand.