Hims & Hers, a telehealth platform popular among millennials, has appointed Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz brings a wealth of experience from his 25-year tenure at the pharmaceutical giant, where he held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for Hims & Hers, stating that the company is poised to transform the healthcare industry. He highlighted that it is the first organization he’s encountered that effectively utilizes modern tools to dismantle the barriers to accessing necessary health solutions.
Following the announcement, Hims & Hers saw a notable increase in stock value, with shares rising by 3% during morning trading. Since the beginning of the year, the company’s stock has surged by an impressive 125%.
This development coincides with Hims & Hers introducing a compounded version of semaglutide, the active ingredient found in popular diabetes and weight loss medications, including Ozempic and Wegovy. The telehealth platform is offering a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s price of $1,349.
The rising demand for these expensive brand-name drugs has led other telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding allows licensed pharmacists or physicians to customize an approved drug to meet individual patient needs. While the act generally restricts the compounding of drugs that are simply replicas of available medications, it allows for this practice when the drugs are in short supply as recognized by the U.S. Food and Drug Administration (FDA).
Schultz indicated a promising outlook for the compounded semaglutide, asserting that there will always be a need for personalized prescriptions even after shortages are resolved.
This strategic move not only enhances Hims & Hers’ position in the healthcare landscape but also provides consumers with affordable access to critical medications, which is a significant step towards making healthcare more accessible and equitable.