Telehealth platform Hims & Hers announced the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz has extensive experience in the pharmaceutical industry, having spent over 25 years at Novo Nordisk, where he held various positions including president and chief operating officer. Currently, he is the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed excitement about joining Hims & Hers, stating that the company is poised to transform the healthcare sector. He emphasized that Hims & Hers is utilizing modern tools to dismantle barriers and enhance access to essential health services for individuals.
Following this announcement, Hims & Hers stock saw a 3% increase during morning trading, with shares rising 125% since the start of the year.
This development occurs shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. Hims & Hers is marketing a month’s supply of this weight loss medication at a price of $199, significantly lower than the nearly $1,000 price of Ozempic and $1,349 for Wegovy.
The prevailing shortage of these sought-after medications has prompted several telehealth platforms to leverage a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications when commercial versions are not available. Compounding involves customizing approved drugs to meet individual patient needs.
While the Act generally prohibits creating compounded drugs that are replicas of commercially available medications, the FDA does not classify drugs in shortage as commercially available. Schultz indicated in an interview that Hims & Hers sees a promising future in the sale of compounded semaglutide and expressed confidence that there will continue to be demand for individualized prescriptions, even after shortages are resolved.