Hims & Hers, a telehealth platform targeted at millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz, who has spent over 25 years at the Danish pharmaceutical company known for diabetes and obesity treatments, previously held positions such as president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his 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 stock climbed by 3% in morning trading, marking a 125% increase since the beginning of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the popular diabetes and weight loss medications Ozempic and Wegovy, developed by Novo Nordisk. The company is selling a month’s supply of the weight loss drug for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349.
The high demand and limited availability of these brand name medications have allowed various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs in shortage. Compounding involves customizing an approved medication by a state-licensed pharmacist or physician to meet individual patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are merely copies of commercially available medications. However, drugs deemed in shortage are not classified as commercially available by the U.S. Food and Drug Administration.
In an interview with Bloomberg, Schultz indicated that Hims & Hers sees a “long future” in selling compounded semaglutide. When asked about the ability of pharmacies to continue producing compounded semaglutide after shortages resolve, Schultz noted that individualized prescriptions would still create demand.