Hims & Hers, a telehealth platform aimed at millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from the Danish pharmaceutical company known for its diabetes and obesity treatments, where he held roles including president and COO. He currently serves as the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “In my extensive career in the pharmaceutical industry, this is the first company I have encountered that is using modern tools to break down barriers and transform how people access essential health solutions. I am excited to be part of this initiative.”
Following the announcement, Hims & Hers saw its stock price increase by 3% during Monday’s trading session, marking a 125% rise since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers is pricing a month’s supply of this weight loss treatment at $199, significantly lower than Ozempic’s nearly $1,000 cost and Wegovy’s $1,349 price.
The shortage of these in-demand and high-priced drugs has led several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act, allowing them to sell compounded versions of medications that are not readily available.
Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet a specific patient’s needs. Generally, the Food, Drug, and Cosmetic Act restricts compounding drugs that are simply replicas of commercially available products. However, medications classified as shortages are not viewed as commercially available by the U.S. Food and Drug Administration (FDA).
In a conversation with Bloomberg on Monday, Schultz expressed confidence in the company’s future in the compounded semaglutide market. When asked about the ongoing ability of pharmacies to produce compounded semaglutide after shortages are resolved, he reassured that there would continue to be circumstances requiring individualized prescriptions.