Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, renowned for its 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 joining Hims & Hers, stating, “This company is on a trajectory to disrupt the healthcare industry. In my extensive career in pharmaceuticals, I have never seen a company that effectively uses modern tools to dismantle barriers and transform how individuals access essential health solutions to enhance their lives. I am excited to be part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in its stock price during morning trading, marking a 125% rise in shares since the start of the year.
This development comes after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular weight loss and diabetes medications Ozempic and Wegovy, manufactured by Novo Nordisk. The telehealth platform markets a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s approximately $1,000 price and Wegovy’s $1,349 cost.
The scarcity of these coveted brand-name drugs has encouraged several telehealth services to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet specific patient needs.
While the Food, Drug, and Cosmetic Act generally prohibits the compounding of medications that simply replicate commercially available ones, the U.S. Food and Drug Administration (FDA) does not categorize drugs that are in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz conveyed confidence that Hims & Hers has a stable future in supplying compounded semaglutide. He reassured that even beyond the current shortages, there will always be scenarios where patients require tailored prescriptions.