Hims & Hers, a telehealth platform primarily catering to millennials, announced on Monday that Kåre Schultz, a veteran executive from Novo Nordisk, has joined its board of directors. Schultz brings over 25 years of experience from the Danish pharmaceutical company, where he held positions including president and chief operating officer. Presently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz highlighted the innovative trajectory of 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.” He expressed excitement about being part of this transformation in healthcare.
Following the announcement, Hims & Hers stock rose by 3% in morning trading, marking a substantial 125% increase since the start of the year. This news comes on the heels of Hims & Hers introducing a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight-loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers offers a month’s supply of this medication at $199, significantly more affordable than the nearly $1,000 price for Ozempic and $1,349 for Wegovy.
The market’s demand for these drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medications during shortages. Compounding involves customizing approved drugs by licensed pharmacists to cater to individual patient needs. While the Act typically restricts the compounding of medications that replicate commercially available drugs, the FDA does not consider those in shortage as part of that category.
Schultz reassured stakeholders in an interview with Bloomberg that Hims & Hers anticipates a sustainable future in selling compounded semaglutide. He noted that even after the shortages are resolved, there will continue to be a necessity for personalized prescriptions.
This strategic move by Hims & Hers signifies a meaningful shift in healthcare accessibility and affordability, promising to improve the landscape for individuals seeking reliable and cost-effective health solutions. The company’s innovative approach, coupled with the addition of Schultz’s extensive experience, positions them well to continue influencing the healthcare sector positively.
In summary, Hims & Hers is poised for continued growth with its new board member and a commitment to providing affordable, personalized healthcare options through telehealth services.