Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a veteran of Novo Nordisk, to its board of directors. Schultz has over 25 years of experience with the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held several positions including president and CEO. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for Hims & Hers, stating, “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.”
Following the announcement, Hims & Hers saw its stock increase by 3% in morning trading, bringing its year-to-date share price rise to an impressive 125%.
The announcement 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, both developed by Novo Nordisk. The company is providing a month’s supply of this weight loss medication for $199, significantly less than the nearly $1,000 price of Ozempic and $1,349 for Wegovy.
Due to the limited availability of these high-demand brand-name drugs, various telehealth platforms have started utilizing a specific provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the unique needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are simply replicas of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In comments to Bloomberg, Schultz stated that Hims & Hers has a “long future” in the compounded semaglutide market. He also indicated that he believes there will still be a demand for individualized prescriptions even after shortages are resolved.