Hims & Hers, a telehealth platform focused on millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, which is well-known for its diabetes and obesity treatments. He has held various key roles, including president and chief operating officer, and 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. In my long career in the pharmaceutical sector, 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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers shares rose by 3% during Monday morning trading, marking a 125% increase since the start of the year.
This news follows Hims & Hers’ recent offering of a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is selling a month’s supply of this weight loss drug for $199, significantly lower than the nearly $1,000 list price of Ozempic and Wegovy, which costs $1,349.
The surge in demand for these expensive brand-name medications has led several telehealth platforms to exploit a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage. Compounding involves customizing an FDA-approved drug by a licensed pharmacist or physician to meet the specific needs of an individual patient.
While the Food, Drug, and Cosmetic Act generally bans the compounding of drugs that are copies of commercially available medications, the FDA does not consider drugs that are in shortage to be commercially available.
In a conversation with Bloomberg on Monday, Schultz stated that the company sees a “long future” in the sale of compounded semaglutide. When asked whether pharmacies would still be able to produce compounded semaglutide once shortages are resolved, Schultz expressed confidence that there would continue to be instances where patients require customized prescriptions.