Telehealth platform Hims & Hers, which is popular among millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has dedicated over 25 years to the Danish pharmaceutical company renowned for its diabetes and obesity treatments, holding various positions including president and chief operating officer. 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 sector, I have never encountered a company quite like this one, which utilizes modern tools to dismantle barriers and transform how individuals access essential health solutions. I am excited to join this journey.”
Following the announcement, Hims & Hers’ stock rose by 3% in Monday morning trading, marking a 125% increase since the start of the year.
This announcement comes on the heels of Hims & Hers beginning to offer a compounded version of semaglutide, the key ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. The company provides a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 and Wegovy’s $1,349 list prices.
The scarcity of these highly sought-after medications has prompted various telehealth platforms to leverage a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications that are in short supply.
Compounding involves tailoring an approved drug by a licensed pharmacist or physician to address the specific needs of a patient.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are mere replicas of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz expressed confidence about the company’s “long future” in selling compounded semaglutide. He reassured that even after the shortages resolve, there would still be instances requiring individualized prescriptions.