Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment 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, known for its diabetes and obesity treatments, where he held various roles, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm about joining Hims & Hers, stating, “The company is on a trajectory to upend the healthcare industry. In my extensive career in pharmaceuticals, this is the first company I have seen that is using modern tools to genuinely dismantle barriers and redefine how individuals access necessary health solutions. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in stock price during morning trading, marking a significant 125% rise since the year began.
The announcement comes on the heels of Hims & Hers beginning to offer a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. The telehealth service is offering a month’s supply of the weight loss medication for $199, significantly lower than the list price of nearly $1,000 for Ozempic and $1,349 for Wegovy.
The ongoing shortage of these high-demand brand-name drugs has led several telehealth companies to explore options provided by the Food, Drug, and Cosmetic Act, which allows the sale of compounded drugs during shortages. Compounding involves a licensed pharmacist or physician customizing an approved drug for a patient’s specific needs.
While the FDA generally bans the compounding of drugs that replicate commercially available medications, products viewed as in shortage are classified as not commercially available.
In a conversation with Bloomberg on Monday, Schultz stated that the company has a “long future” in the compounded semaglutide business. He reassured that even when drug shortages resolve, there will remain instances where patients require personalized prescriptions.