Hims & Hers, a telehealth platform that caters to 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 the Danish pharmaceutical company renowned for its diabetes and obesity treatments, where he held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press statement, Schultz expressed enthusiasm about 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 shares rose by 3% in morning trading, contributing to an impressive 125% increase in stock value since the year’s start.
This news comes shortly after Hims & Hers began offering a compounded form of semaglutide, the active ingredient in Novo Nordisk’s popular medications for diabetes and weight loss, Ozempic and Wegovy. The telehealth company is selling a monthly supply of this weight loss drug for $199, significantly less than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349.
The high demand and limited availability of these brand-name drugs have prompted several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications in times of shortage. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet an individual patient’s needs.
While the Food, Drug, and Cosmetic Act generally forbids compounding drugs that merely replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not regard shortage drugs as commercially available.
Schultz conveyed to Bloomberg on Monday that Hims & Hers has a “long future” ahead in marketing compounded semaglutide. When questioned about the future of compounded semaglutide once shortages are resolved, he expressed confidence that individualized prescriptions will continue to create ongoing demand.