Hims & Hers, a telehealth company appealing to millennials, announced on Monday the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at the Danish pharmaceutical firm, known for its products in diabetes and obesity care, 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 enthusiasm about 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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in its stock price during Monday morning trading, marking a 125% rise since the beginning of the year.
This development comes soon after Hims & Hers began offering customers a compounded version of semaglutide, the main ingredient in popular diabetes and weight loss treatments Ozempic and Wegovy, both manufactured by Novo Nordisk. The telehealth company is providing a month’s supply of the weight loss medication at $199, significantly cheaper than the nearly $1,000 retail price of Ozempic and $1,349 for Wegovy.
The scarcity of these sought-after drugs has prompted several telehealth platforms to leverage a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications experiencing shortages. Compounding allows state-licensed pharmacists or physicians to customize medications to meet individual patient needs.
Typically, the Act restricts the compounding of drugs that are merely copies of commercially available medications. However, drugs that are in shortage are not regarded as commercially available by the U.S. Food and Drug Administration (FDA).
On Monday, Schultz indicated to Bloomberg that the company has a promising future ahead in selling compounded semaglutide. When questioned about the availability of compounded semaglutide after shortages are resolved, Schultz expressed confidence that tailored prescriptions will continue to be necessary for certain patients.