Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience with the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz stated, “Hims & Hers is on a trajectory to upend the healthcare industry. 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 the announcement, Hims & Hers stock increased by 3% in morning trading, reflecting a substantial 125% rise since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers sells a month’s supply of this weight loss treatment for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 tag.
The limited availability of these popular, expensive brand-name drugs has led several telehealth platforms to leverage a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications in shortage. Compounding involves the customization of an approved drug by a licensed pharmacist or physician to suit the specific needs of a patient.
Generally, the act prohibits compounding drugs that merely replicate commercially available medications. However, medications that are in shortage do not fall under the U.S. Food and Drug Administration’s (FDA) definition of commercially available.
In an interview with Bloomberg, Schultz expressed confidence in the long-term prospects of selling compounded semaglutide. When asked about the future of compounded semaglutide after current shortages, he noted that there would still be instances where patients require individualized prescriptions, alleviating any concerns he might have.