Hims & Hers, the telehealth platform catering to millennials, announced the addition of Kåre Schultz to its board of directors on Monday. Schultz, who has a strong background in the pharmaceutical industry, previously worked for over 25 years at Novo Nordisk, a leading pharmaceutical company known for its diabetes and obesity treatments, where he held various positions, including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for joining Hims & Hers, stating that the company is poised to revolutionize the healthcare sector by utilizing modern tools to enhance access to necessary health solutions. He mentioned, “In my long career in the pharmaceutical industry, 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.”
Following the announcement, Hims & Hers shares saw a 3% increase in Monday morning trading, marking a 125% rise since the start of the year. This news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in well-known diabetes and weight loss medications Ozempic and Wegovy, which are both produced by Novo Nordisk. Hims & Hers offers a monthly supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 and Wegovy’s $1,349 prices.
The high demand for these branded drugs, coupled with limited supply, has prompted telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications when originals are in shortage. Compounding involves tailoring an approved drug to suit the specific needs of patients, conducted by licensed pharmacists or physicians.
While the FDA generally prohibits the compounding of drugs that are merely replicas of commercially available medications, it does not classify drugs in shortage as commercially available. Schultz conveyed confidence to Bloomberg about Hims & Hers’ long-term prospects in selling compounded semaglutide, indicating that even after shortages are resolved, there would still be a demand for personalized prescriptions.