The telehealth platform Hims & Hers, which targets millennials, announced on Monday the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz has spent over 25 years at the renowned Danish pharmaceutical company famed for its diabetes and obesity treatments, holding 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 company 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 saw a 3% rise in stock during Monday morning trading, with shares up 125% since the start of the year.
This news comes in the wake of Hims & Hers beginning to offer a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. The company is providing a month’s supply of the medication for $199, significantly lower than the nearly $1,000 list price of Ozempic and Wegovy’s $1,349 price tag.
The shortage of these high-demand and high-priced brand name drugs has led several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in shortage.
Compounding involves a state-licensed pharmacist or physician customizing an approved drug to meet the unique needs of a specific patient. While the Food, Drug, and Cosmetic Act typically prohibits the compounding of drugs that are simply copies of commercially available medications, the U.S. Food and Drug Administration (FDA) does not categorize medications in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz indicated that the company sees a “long future” in selling compounded semaglutide. When asked if pharmacies would continue to provide compounded semaglutide after shortages cease, he expressed confidence, noting that there would always be situations where patients require individualized prescriptions.