Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz to its board of directors. Schultz is a veteran of Novo Nordisk, where he spent over 25 years in various roles, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. This is the first company in my extensive career in the pharmaceutical sector that is leveraging modern tools to effectively dismantle barriers, transforming how individuals access essential health solutions.”
Following the announcement, Hims & Hers saw its stock rise by 3% during Monday morning trading and has experienced a remarkable 125% increase since the start of the year.
This development comes after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company markets a month’s supply of the compounded medication for $199, significantly undercutting the nearly $1,000 price of Ozempic and the $1,349 price for Wegovy.
The limited supply of these highly sought-after and costly brand-name drugs has led several telehealth providers to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications facing shortages. Compounding involves the customization of an approved drug by licensed pharmacists or physicians to cater to individual patient needs.
While the Food, Drug, and Cosmetic Act usually prohibits the compounding of drugs that merely replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz affirmed that the company envisions a long-term future in selling compounded semaglutide. He also addressed concerns about pharmacies continuing to produce compounded semaglutide post-shortages, stating he was not worried, as there would still be instances where patients require tailored prescriptions.