Hims & Hers, a telehealth platform catering to millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at Novo Nordisk, a global leader in diabetes and obesity medications, where he held various positions, including president and chief operating officer. He currently serves as CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about 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.”
The company’s stock saw a 3% increase in early trading on Monday, with shares up 125% since the year’s start.
This announcement follows Hims & Hers’ recent move to provide customers with a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss drugs Ozempic and Wegovy, both manufactured by Novo Nordisk. The platform is offering a month’s supply of the weight loss medication for $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The ongoing shortage of these high-demand, expensive branded drugs has prompted several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act, allowing for the sale of compounded versions of medications that are not available. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to suit the specific needs of individual patients.
While the Food and Drug Administration (FDA) generally prohibits compounding drugs that are simply replicas of commercially available medications, drugs deemed to be in shortage are not classified as such.
Schultz noted to Bloomberg that Hims & Hers sees a “long future” in the compounded semaglutide market and expressed confidence that pharmacies would continue to make it available even after shortages are resolved, as there will always be instances requiring personalized prescriptions.