Telehealth platform Hims & Hers announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday. Schultz has over 25 years of experience at the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various positions, including president and COO. He currently serves as CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining 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.” He underscored the potential of Hims & Hers to transform the healthcare industry.
Following the announcement, Hims & Hers shares increased by 3% in morning trading, bringing the stock’s gains to 125% this year.
The news arrives shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers is selling a month’s supply of its compounded weight loss medication for $199, significantly cheaper than the nearly $1,000 price tag for Ozempic and $1,349 for Wegovy.
The limited availability of these expensive brand-name drugs has led some telehealth platforms to leverage an aspect of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to address the specific needs of individual patients.
Although the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that merely replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz indicated in a Bloomberg interview that Hims & Hers sees a promising future in the compounded semaglutide market. When asked about the potential for pharmacies to continue making compounded semaglutide after current shortages, Schultz expressed confidence, citing ongoing individualized prescription needs.