Hims & Hers, a telehealth platform targeting millennials, announced the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors on Monday. Schultz has over 25 years of experience at Novo Nordisk, recognized for its diabetes and obesity treatments, where he held positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a statement, Schultz expressed enthusiasm for Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. 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 stock rose by 3% during morning trading, with shares up 125% since the start of the year. This development comes shortly after the company began offering 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 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 limited availability of these costly brand-name drugs has allowed several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in shortage.
Compounding involves customizing an approved medication by a licensed pharmacist or physician to suit individual patient needs. While the Food, Drug, and Cosmetic Act typically restricts the compounding of drugs that are replicas of commercially available treatments, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview, Schultz highlighted the company’s long-term prospects for selling compounded semaglutide, noting that even after shortages are resolved, there will still be instances where patients require individualized prescriptions.