Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz, who has spent over 25 years with the Danish pharmaceutical company renowned for its diabetes and obesity treatments, has held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “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 this announcement, Hims & Hers’ stock rose 3% in morning trading, showing a 125% increase since the start of the year.
This news arrives shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is selling a month’s supply of the weight loss medication for $199, a significant reduction compared to Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The limited availability of these highly sought-after and expensive brand-name drugs has prompted several telehealth platforms to utilize a section of the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications that are in shortage. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet the specific needs of a patient.
Typically, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are mere copies of commercially available medications. However, medications that are in shortage are not regarded by the U.S. Food and Drug Administration (FDA) as commercially available.
In an interview with Bloomberg on Monday, Schultz expressed confidence in the company’s long-term prospects regarding the sale of compounded semaglutide. When asked about the future of compounded semaglutide production once shortages are resolved, Schultz indicated he was not concerned, noting that individualized prescriptions would still be necessary for some patients.