Hims & Hers, a telehealth platform catering primarily to millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has spent over 25 years at the Danish pharmaceutical company, which is renowned for its diabetes and obesity treatments, holding various key positions, including president and chief operating officer. He is also the current CEO of Teva Pharmaceutical.
In a statement, Schultz expressed enthusiasm about Hims & Hers, saying, “This company is leveraging modern tools to disrupt the healthcare industry and change how people access essential health solutions.” He added that he is excited to be part of the company’s transformative journey.
Following the announcement, Hims & Hers stock rose by 3% during morning trading and has increased by 125% since the start of the year.
The news arrives shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both made by Novo Nordisk. Hims & Hers is providing a month’s supply of the weight loss medication for $199, significantly less than Ozempic’s approximate $1,000 retail price and Wegovy’s $1,349 price.
The limited availability of these sought-after and pricey brand-name drugs has prompted several telehealth platforms to utilize a particular provision of the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in short supply. Compounding involves modifying an approved drug to cater to the specific needs of a patient by a licensed pharmacist or physician.
Generally, the Food, Drug, and Cosmetic Act restricts compounding drugs that merely replicate commercially available medications. However, drugs deemed to be in short supply are not considered commercially available by the U.S. Food and Drug Administration (FDA).
Schultz informed Bloomberg that the company foresees a “long future” in offering compounded semaglutide. When questioned about the ongoing ability of pharmacies to produce compounded semaglutide after the shortages are resolved, Schultz expressed confidence, noting that there will always be scenarios where patients require personalized prescriptions.