Telehealth platform Hims & Hers announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors. Schultz has a long history in the pharmaceutical industry, spending over 25 years at Novo Nordisk, where he held various senior roles, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a statement, Schultz expressed enthusiasm about 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 shares rose by 3% during morning trading, bringing total gains to 125% since the start of the year.
This news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss drugs Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is selling a month’s supply of the weight loss medication for $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s price tag of $1,349.
The ongoing shortage of these brand-name drugs has prompted several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, allowing the sale of compounded versions of medications in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the unique needs of individual patients.
While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz mentioned in an interview with Bloomberg that the company envisions a “long future” in providing compounded semaglutide. He added that he remains optimistic about the continued ability of pharmacies to produce compounded semaglutide even after shortages conclude, as there will still be scenarios requiring individualized prescriptions.