Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience with the Danish pharmaceutical company, which specializes in diabetes and obesity medications, and held various positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
Schultz expressed enthusiasm for joining Hims & Hers, stating, “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 saw its stock rise 3% in Monday morning trading, and shares have increased by 125% since the beginning of the year.
The development comes just months after Hims & Hers began to offer its customers a compounded version of semaglutide, the active ingredient in well-known diabetes and weight-loss medications, Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is offering a month’s supply of this weight-loss medication for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 cost.
Due to the limited availability of these highly sought-after and expensive brand-name drugs, various telehealth platforms have sought to capitalize on a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medications that are currently in shortage.
Compounding involves modifying an approved drug by a licensed pharmacist or physician to meet individual patient needs. Generally, the act prohibits compounding drugs that replicate commercially available medications. However, the FDA does not classify drugs that are in shortage as commercially available.
Schultz indicated in an interview with Bloomberg that Hims & Hers has a promising future in selling compounded semaglutide. When questioned about the capability of pharmacies to provide compounded semaglutide once shortages are resolved, Schultz suggested he was not concerned, citing ongoing instances where patients would need tailored prescriptions.