Hims & Hers, a telehealth platform favored by millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from Novo Nordisk, a Danish pharmaceutical company renowned for its diabetes and obesity treatments, where he held various senior positions, including president and chief operating officer. He currently serves as CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for the company, stating, “Hims & Hers is on a trajectory to upend the healthcare 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 shares increased by 3% during Monday morning trading, reflecting a significant rise of 125% since the start of the year.
This development comes in the wake of Hims & Hers offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is providing a month’s supply of the weight loss medication for $199, significantly lower than the nearly $1,000 price for Ozempic and the $1,349 tag for Wegovy.
The high demand and limited availability of these costly brand-name drugs have led several telehealth platforms, including Hims & Hers, to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in shortage. Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet the unique needs of a patient.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that are merely copies of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In a conversation with Bloomberg on Monday, Schultz indicated that Hims & Hers sees a “long future” in selling compounded semaglutide. When questioned about the continuation of compounded semaglutide production once shortages are resolved, Schultz noted he remains untroubled, as there will still be instances where patients require tailored prescriptions.