Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a former long-time executive at Novo Nordisk, to its board of directors.
Schultz has spent over 25 years with the Danish pharmaceutical company, where he held various roles including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical. In a press release, Schultz expressed his enthusiasm for 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.”
Following the announcement, shares of Hims & Hers rose by 3% during trading on Monday and have seen a significant increase of 125% since the start of the year.
The news comes after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in Novo Nordisk’s diabetes and weight loss medications, Ozempic and Wegovy. The company is selling a month’s supply of the compounded weight loss medication for $199, which is significantly more affordable compared to the nearly $1,000 price of Ozempic and $1,349 for Wegovy.
The scarcity of these high-demand brand-name drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medications that are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet individual patient needs.
Typically, the law prohibits compounding drugs that replicate commercially available medications. However, the FDA does not classify drugs in shortage as commercially available. Schultz assured Bloomberg that Hims & Hers has a “long future” ahead in selling compounded semaglutide and indicated that even after shortages end, there will still be a need for individualized prescriptions.