Telehealth platform Hims & Hers announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors. Schultz, who has over 25 years of experience at the Danish pharmaceutical company, including roles as president and chief operating officer, currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed 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’ stock rose by 3% during Monday morning trading and has increased by 125% since the beginning of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, an active ingredient in popular diabetes and weight-loss medications like Ozempic and Wegovy, both produced by Novo Nordisk. The telehealth company markets a month’s supply of this weight loss medication for $199, significantly cheaper than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price tag.
The demand for these high-cost medications has led various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications in short supply. Compounding allows state-licensed pharmacists or physicians to customize an approved drug to meet the specific needs of individual patients.
While the Food, Drug, and Cosmetic Act typically restricts compounding drugs that are identical to commercially available medications, the U.S. Food and Drug Administration (FDA) defines drugs in shortage as not commercially available. Schultz indicated to Bloomberg that Hims & Hers has a long-term strategy for selling compounded semaglutide. When questioned about the future of compounded semaglutide once shortages resolve, Schultz reassured that there would still be scenarios necessitating individualized prescriptions.