Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
With over 25 years of experience at Novo Nordisk, a company renowned for its diabetes and obesity treatments, Schultz 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. 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 a 3% increase in its stock during Monday morning trading, bringing its total gains to 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss drugs, Ozempic and Wegovy, produced by Novo Nordisk. Hims & Hers provides a month’s supply of the weight loss medication for $199, significantly lower than Ozempic’s approximate $1,000 price and Wegovy’s $1,349 cost.
The rising demand for these expensive brand name drugs has prompted several telehealth companies to leverage a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are currently in shortage.
Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit the specific needs of a patient. Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are merely duplicates of commercial products. However, drugs recognized by the U.S. Food and Drug Administration (FDA) as being in shortage do not fall under this restriction.
On Monday, Schultz told Bloomberg that the company anticipates a “long future” in the sale of compounded semaglutide. When asked whether pharmacies would still be able to produce compounded semaglutide after the shortages are resolved, Schultz reassured that there will always be instances where patients require personalized prescriptions.