Telehealth platform Hims & Hers has announced the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors. Schultz, who has over 25 years of experience at the Danish pharmaceutical company, where he held positions including president and chief operating officer, is currently the CEO of Teva Pharmaceutical.
In a press statement, 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.” His comments highlight the company’s ambition to disrupt traditional healthcare models.
Following the announcement, Hims & Hers experienced a 3% increase in stock value during Monday morning trading, bringing its year-to-date rise to 125%.
The development comes shortly after Hims & Hers began offering a compounded version of semaglutide, which is the active ingredient in popular diabetes and weight loss medications such as Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is marketing a month’s supply of the weight loss medication for $199, significantly cheaper than the nearly $1,000 price of Ozempic and the $1,349 cost of Wegovy.
The scarcity of these high-demand brand-name drugs has led several telehealth providers to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding refers to the customization of an approved drug by a licensed pharmacist or physician to suit an individual patient’s specific needs.
Generally, the Food, Drug, and Cosmetic Act restricts the creation of compounded drugs that replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify medications in shortage as commercially available.
In comments to Bloomberg, Schultz affirmed that Hims & Hers plans to continue selling compounded semaglutide into the foreseeable future, noting that patients will still require individualized prescriptions even after the shortages are resolved.