Hims & Hers, a telehealth platform targeted at millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors. Schultz has spent over 25 years at the Danish pharmaceutical company, known for its diabetes and obesity treatments, holding various positions, including president and CEO. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm about joining Hims & Hers, stating, “This is the first company I’ve 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 Monday morning trading, marking a 125% increase since the start of the year.
This news coincides with Hims & Hers beginning to offer a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. Hims & Hers is selling a monthly supply of this weight loss treatment for $199, significantly cheaper than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 price.
The limited availability of these sought-after medications has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of drugs in shortage. Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet the specific needs of patients.
Typically, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are mere copies of available medications. However, the U.S. Food and Drug Administration (FDA) does not consider drugs in shortage to be commercially available.
Schultz indicated to Bloomberg that Hims & Hers has a “long future” in selling compounded semaglutide and expressed confidence that pharmacies would continue to make it even after shortages are resolved, as individualized prescriptions would still be necessary for many patients.