Hims & Hers, the telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, renowned for its diabetes and obesity treatments, where he held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about his new role, 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 shares rose by 3% in Monday morning trading, reflecting a remarkable 125% increase since the start of this year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers sells a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 and Wegovy’s $1,349 prices.
The shortage of these sought-after brand-name drugs has prompted several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in short supply. Compounding involves customizing an approved medication by a licensed pharmacist or physician to address the specific needs of individual patients.
While the Food, Drug, and Cosmetic Act normally prohibits the compounding of drugs that mimic commercially available medications, the U.S. Food and Drug Administration (FDA) does not consider drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz mentioned that Hims & Hers is committed to selling compounded semaglutide for the long term. He noted that individual prescriptions will continue to be necessary even after shortages are resolved.