Telehealth platform Hims & Hers announced on Monday the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors. Schultz has spent over 25 years at the Danish pharmaceutical company, which is renowned for its diabetes and obesity medications, and has held various positions, including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for 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 saw its stock increase by 3% during Monday’s morning trading, and the company has experienced a remarkable 125% gain in shares since the start of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is providing a monthly supply of the weight loss drug for $199, significantly less than Ozempic’s nearly $1,000 list price and Wegovy’s price of $1,349.
The scarcity of these highly sought-after brand-name drugs has prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the individualized needs of patients.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are mere copies of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify medications in shortage as commercially available.
In remarks to Bloomberg on Monday, Schultz stated that the company has a “long future” in selling compounded semaglutide. When questioned about the potential for pharmacies to continue making compounded semaglutide after shortages are resolved, Schultz indicated confidence, suggesting there will still be instances requiring tailored prescriptions for patients.