Hims & Hers, a telehealth platform targeting millennials, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, where he held various positions including president and chief operating officer. He is currently 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… It is the first company I’ve 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 3% in morning trading and has increased by 125% since the start of the year. This development comes on the heels of the company offering a compounded version of semaglutide, an active ingredient found in the diabetes and weight loss drugs Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers sells a month’s supply of this weight loss medication for $199, significantly lower than the nearly $1,000 list price for Ozempic and the $1,349 price for Wegovy.
The scarcity of these popular drugs has prompted telehealth platforms, including Hims & Hers, to utilize a provision of the Food, Drug, and Cosmetic Act that allows the sale of compounded drugs when commercial versions are in shortage. Compounding involves a state-licensed pharmacist or physician customizing a drug to meet an individual patient’s specific needs and is generally prohibited when it results in copies of already available medications. However, if a drug is in shortage, the FDA does not classify it as commercially available.
In comments to Bloomberg, Schultz expressed confidence in the long-term prospects for selling compounded semaglutide, stating that even after shortages are resolved, there will still be a need for individualized prescriptions in certain cases.