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 has over 25 years of experience with the Danish pharmaceutical company, which is renowned for its diabetes and obesity medications, and has held various roles, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “The company 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’ stock rose 3% in Monday morning trading, marking a 125% increase since the beginning of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. The company is pricing a month’s supply of this weight loss medication at $199, significantly less than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349 list price.
The scarcity of these highly sought-after and expensive brand-name drugs has led several telehealth platforms to capitalize on a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications experiencing shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to cater to the specific needs of patients.
Although the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that are merely duplicates of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
On Monday, Schultz stated in an interview with Bloomberg that there is a “long future” for the company in the sale of compounded semaglutide. When questioned about whether pharmacies would still produce compounded semaglutide post-shortages, Schultz expressed confidence, suggesting that there would continue to be instances where patients require personalized prescriptions.