Hims & Hers, a telehealth platform targeting millennials, announced the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors on Monday. Schultz, who has spent more than 25 years with the renowned Danish pharmaceutical company known for its diabetes and obesity medications, has held significant positions including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed excitement about joining the company, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. 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 of how people access the health solutions they need to live their fullest lives. I’m thrilled to be a part of this journey.”
On the day of the announcement, Hims & Hers experienced a 3% increase in stock value, contributing to a remarkable 125% rise in shares since the beginning of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss medications Ozempic and Wegovy, which are produced by Novo Nordisk. The telehealth platform is selling a month’s supply of this weight loss medication for $199, significantly more affordable than Ozempic’s approximate $1,000 price and Wegovy’s $1,349 list price.
The ongoing shortage of these popular medications has allowed various telehealth platforms, including Hims & Hers, to utilize a provision of the Food, Drug, and Cosmetic Act, enabling them to sell compounded versions of drugs that are currently in short supply. This compounding process allows pharmacists or physicians to customize approved drugs for individual patients.
While the Food and Drug Administration (FDA) generally restricts compounding drugs that closely resemble commercially available medications, the law permits the compounding of drugs that are deemed to be in shortage.
Schultz remarked to Bloomberg that Hims & Hers has a promising future in providing compounded semaglutide. When questioned about the continuation of compounded semaglutide after the shortages resolve, he expressed confidence that there will still be circumstances requiring tailored prescriptions for patients.
This strategic move not only emphasizes Hims & Hers’ commitment to making healthcare more accessible but also opens doors for innovative solutions in a market eager for effective and affordable health options. As telehealth continues to evolve, the integration of executive expertise like Schultz’s could signify a shift towards more inclusive and customizable healthcare services.
Overall, this announcement reflects a significant step forward for Hims & Hers, indicating a hopeful future for both the company and its customers seeking effective healthcare solutions at reduced costs.