Hims & Hers, a telehealth platform aimed at millennials, announced the addition of Kåre Schultz, a former executive from Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, renowned 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 enthusiasm about joining Hims & Hers, stating, “This company is uniquely positioned to transform the healthcare landscape. Throughout my career in the pharmaceutical industry, I have not seen a business leverage modern tools to dismantle obstacles and revolutionize access to vital health solutions.”
Following the announcement, Hims & Hers stock saw a 3% increase in morning trading and has surged 125% since the start of the year.
This news comes shortly after Hims & Hers began selling a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss drugs like Ozempic and Wegovy, made by Novo Nordisk. The telehealth platform is offering a month’s supply of this weight loss medication for $199, significantly lower than the list price of nearly $1,000 for Ozempic and $1,349 for Wegovy.
The high demand and limited availability of these brand-name medications have led several telehealth services to take advantage of a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications that are not available due to shortages. Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet the unique needs of individual patients.
Typically, the law restricts the compounding of drugs that merely replicate commercially available products. However, the FDA does not classify drugs in shortage as commercially accessible.
Schultz told Bloomberg that Hims & Hers has a promising future in offering compounded semaglutide. He also noted that concerns over the availability of compounded semaglutide post-shortage are unwarranted, as there will still be instances where patients require tailored prescriptions.