Hims & Hers, a telehealth platform catering primarily to millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz boasts over 25 years of experience at the renowned Danish pharmaceutical company, known for its treatments for diabetes and obesity, where he held various roles such as president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a statement, Schultz expressed enthusiasm about joining Hims & Hers, noting, “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.”
Following the announcement, Hims & Hers stock rose by 3% during Monday’s trading, marking a 125% increase since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in popular medications like Ozempic and Wegovy, both produced by Novo Nordisk. The telehealth platform is selling a month’s supply of this weight loss medication for $199, significantly lower than the nearly $1,000 price for Ozempic and $1,349 for Wegovy.
The limited availability of these high-demand brand-name medications has prompted various telehealth companies to leverage a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages.
Compounding involves customizing an FDA-approved drug by a licensed pharmacist or physician to meet the specific needs of patients. While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that replicate commercially available medications, the FDA does not classify medications in shortage as commercially available.
Schultz commented to Bloomberg that the company sees a “long future” in selling compounded semaglutide. He added that he is not concerned about the ability of pharmacies to continue compounding the drug after the shortages are resolved, as there will still be situations where patients require tailored prescriptions.