Telehealth platform Hims & Hers announced the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz has spent over 25 years with Novo Nordisk, a company primarily known for its diabetes and obesity medications, 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 about joining Hims & Hers, stating, “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’ stock increased by 3% during Monday morning trading and has risen by 125% since the beginning of the year.
The news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss drugs such as Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is pricing a month’s supply of this medication at $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349.
The high demand and limited availability of these brand-name drugs have prompted several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are currently in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the unique needs of a patient.
Typically, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz indicated that the company plans to have a “long future” in the sale of compounded semaglutide. When asked about the continuation of compounded semaglutide sale after shortages resolve, Schultz expressed confidence that individualized prescriptions will still be necessary for patients.