Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, recognized 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 release, Schultz expressed enthusiasm about Hims & Hers, stating, “In my long career in the pharmaceutical industry, 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 this announcement, Hims & Hers shares rose by 3% during Monday morning trading and have increased by 125% since the start of the year.
This development 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 both produced by Novo Nordisk. The company offers a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349 cost.
The limited availability of these high-demand 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 that are in shortage. Compounding involves tailoring an approved drug by a state-licensed pharmacist or physician to cater to the specific needs of a patient.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are mere replicas of commercially available medications. However, medications deemed by the U.S. Food and Drug Administration (FDA) to be in shortage are exempt from this classification.
In an interview with Bloomberg on Monday, Schultz stated that Hims & Hers sees a “long future” in selling compounded semaglutide. When questioned about the future of compounded semaglutide after shortages are resolved, Schultz expressed confidence that patients will continue to require individualized prescriptions.