Hims & Hers, a telehealth platform focused on millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz has an extensive background in the pharmaceutical industry, having spent over 25 years at Novo Nordisk, where he held various positions, including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his 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’ stock saw a 3% increase during morning trading and has surged 125% since the start of the year.
This development arrives shortly after the company began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications like Ozempic and Wegovy, which are produced by Novo Nordisk. Hims & Hers is providing a month’s supply of this weight loss medication for $199, significantly lower than the nearly $1,000 price tag of Ozempic and the $1,349 for Wegovy.
Due to the high demand and limited supply of these expensive brand-name drugs, multiple telehealth platforms have leveraged a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are currently in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit the individual needs of a patient.
While the FDA generally prohibits compounding copies of commercially available medications, those in shortage are categorized differently. Schultz indicated to Bloomberg on Monday that Hims & Hers has a “long future” in selling compounded semaglutide and mentioned that he isn’t concerned about the potential discontinuation of these compounded medications following the end of shortages, as there will still be occasions where patients require individualized prescriptions.