Hims & Hers, a telehealth platform aimed at millennials, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz has over 25 years of experience at Novo Nordisk, a company renowned for its diabetes and obesity treatments, where he held various positions, including president and chief operating officer. He is currently serving as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining Hims & Hers, stating, “This company is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical industry, 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 saw its stock rise by 3% during Monday morning trading, with shares up 125% since the start of the year.
This news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in major diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. The company is selling a month’s supply of this weight loss medication for $199, significantly less than Ozempic’s roughly $1,000 list price and Wegovy’s $1,349 price tag.
The scarcity of these high-demand and costly brand-name drugs has led several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act, permitting the sale of compounded versions of medications that are in short supply. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to suit the specific needs of a patient.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that are mere replicas of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz mentioned to Bloomberg that he believes Hims & Hers has a “long future” in offering compounded semaglutide. He noted that even after shortages are resolved, there will still be scenarios where patients require individualized prescriptions, alleviating concerns about the continued provision of compounded semaglutide.