Hims & Hers, a telehealth platform catering to millennials, has announced the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz brings over 25 years of experience from the Danish pharmaceutical company, known for its products related to diabetes and obesity. He currently serves as the CEO of Teva Pharmaceutical.
In a recent press release, Schultz expressed enthusiasm for 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 health solutions.” He is excited to join the company as it aims to innovate within the healthcare sector.
Following the announcement, Hims & Hers’ stock increased by 3% during morning trading and has risen 125% since the start of the year. This growth coincides with Hims & Hers’ introduction of a compounded version of semaglutide, the active ingredient found in the well-known diabetes and weight loss medications, Ozempic and Wegovy, both manufactured by Novo Nordisk. The telehealth company is offering a month’s supply of this weight loss medication for $199, significantly lower than the retail prices of Ozempic and Wegovy, which are nearly $1,000 and $1,349 respectively.
The demand for these expensive medications has prompted several telehealth services to utilize a provision within the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage. Compounding involves customizing a licensed medication to meet individual patient needs, though standard regulations typically prohibit creating copies of existing drugs.
However, the FDA does not classify drugs in shortage as commercially available, allowing for such compounding practices. Schultz mentioned to Bloomberg that he believes the company will have a “long future” in selling compounded semaglutide. He also indicated he is not concerned about pharmacies’ ability to continue producing compounded semaglutide after shortages are resolved, citing the ongoing need for tailored patient prescriptions.