The telehealth platform Hims & Hers, which primarily caters to millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the well-known Danish pharmaceutical company, where he 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, “This is the first company I have seen in my career that is leveraging today’s modern tools to truly break down barriers and change 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 price rose 3% during morning trading, marking a 125% increase since the start of the year.
This announcement 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, which are manufactured by Novo Nordisk. Hims & Hers is pricing a month’s supply of the medication at $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The demand for these expensive brand name drugs has prompted various telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that allows for 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 meet the specific needs of individual patients.
Although the act generally prohibits compounding drugs that are merely copies of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz mentioned that Hims & Hers sees a “long future” in selling compounded semaglutide. When asked about the future of pharmacies making compounded semaglutide post-shortage, Schultz stated he was not concerned, as there will continue to be instances where patients require customized prescriptions.