The telehealth platform Hims & Hers, aimed at millennials, announced on Monday the appointment of Kåre Schultz, a former long-term executive at Novo Nordisk, to its board of directors.
Schultz, who has over 25 years of experience in the pharmaceutical industry, has held various positions at the Danish pharmaceutical company known for its diabetes and obesity treatments, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “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 shares rose 3% during Monday morning trading, marking a 125% increase since the start of the year.
This development comes just months after Hims & Hers began offering customers a compounded version of semaglutide, the ingredient found in popular diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. The company is selling a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s near $1,000 list price and Wegovy’s $1,349 price.
The shortage of these highly sought-after and costly brand-name drugs has allowed several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in short supply.
Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet the specific needs of a patient. Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are merely copies of commercially available medications. However, medications deemed in shortage are not considered commercially available according to the U.S. Food and Drug Administration (FDA).
In an interview with Bloomberg on Monday, Schultz expressed confidence in the company’s long-term prospects for selling compounded semaglutide. When questioned about the future of compounded semaglutide after the shortages are resolved, Schultz mentioned that there would still be instances where patients require individualized prescriptions, alleviating any concerns.