Hims & Hers, a telehealth platform catering to millennials, announced the addition of Kåre Schultz to its board of directors on Monday. Schultz, who has over 25 years of experience at Novo Nordisk, where he held various positions including president and chief operating officer, is currently the CEO of Teva Pharmaceutical.
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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in stock price during morning trading, marking a 125% rise since the start of the year.
This news coincides with Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss drugs Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is selling a month’s supply of this weight loss medication for $199, significantly cheaper than the list prices of Ozempic and Wegovy, which are nearly $1,000 and $1,349, respectively.
The ongoing shortage of these brand-name drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications in cases of shortage. Compounding allows licensed pharmacists or physicians to customize an approved drug to meet the specific needs of individual patients.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz indicated to Bloomberg that Hims & Hers has a “long future” in the sale of compounded semaglutide. He reassured that even after the shortages are resolved, there would still be circumstances requiring individualized prescriptions for patients.