Hims & Hers, a telehealth platform targeting millennials, announced on Monday the addition 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 is known for its diabetes and obesity treatments, where he held various positions, including president and COO. He currently 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.”
Hims & Hers experienced a 3% stock increase during Monday morning trading, contributing to a 125% rise since the start of the year.
The announcement follows Hims & Hers’ launch of a compounded form of semaglutide, the active ingredient in the widely used 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.
The high demand for these expensive brand-name drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet individual patient needs.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are simply replicas of commercially available medications. However, under U.S. Food and Drug Administration (FDA) regulations, drugs in shortage are not classified as commercially available.
Schultz informed Bloomberg on Monday that Hims & Hers has a “long future” in the sale of compounded semaglutide. When asked about the availability of compounded semaglutide once shortages end, Schultz expressed confidence, noting that there would still be circumstances requiring individualized prescriptions.