Hims & Hers, a telehealth platform popular among millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has spent over 25 years at Novo Nordisk, a leading company in diabetes and obesity treatments, where he held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “This is the first company in my long career in the pharmaceutical industry that is utilizing modern tools to truly break down barriers and transform the way individuals access essential health solutions. I’m excited to join this journey.”
Following the announcement, Hims & Hers saw a 3% increase in stock price during Monday morning trading and has experienced a 125% rise in shares since the start of the year.
The announcement comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in the widely used diabetes and weight loss medications, Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is selling a month’s supply of this weight loss medication for $199, significantly lower than the nearly $1,000 price tag for Ozempic and $1,349 for Wegovy.
The scarcity of these high-demand medications has prompted several telehealth companies to leverage a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage. Compounding involves customizing an approved drug by a pharmacist or physician to meet the specific needs of a patient.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that merely replicate commercially available medications. However, the FDA does not classify drugs that are in shortage as commercially available.
Schultz informed Bloomberg on Monday that Hims & Hers envisions a “long future” in selling compounded semaglutide. When asked if pharmacies would continue to produce compounded semaglutide once the shortages are resolved, Schultz remained optimistic, highlighting that individual patient needs would still necessitate customized prescriptions.