Hims & Hers, a telehealth platform popular among millennials, announced on Monday the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz, who has over 25 years of experience in the pharmaceutical industry, previously served as president and chief operating officer at Novo Nordisk, known for its diabetes and obesity treatments. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his 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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in stock during morning trading, marking a 125% rise in share price since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. The company is offering a month’s supply of the weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349 cost.
The high demand and limited supply of these brand-name drugs have prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, which allows for the sale of compounded versions of medications that are currently in shortage. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet the individual needs of patients.
Typically, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are merely replicas of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz discussed the company’s future with compounded semaglutide in an interview with Bloomberg, suggesting that the demand for individualized prescriptions would remain even after shortages are resolved.