Hims & Hers, a telehealth platform aimed at 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 known for its diabetes and obesity treatments, where he held various roles including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a statement, Schultz expressed excitement about joining Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. 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.”
Following the announcement, Hims & Hers stock rose by 3% during Monday’s trading session, and the company’s shares have increased by 125% since the start of the year.
The development comes shortly after Hims & Hers began offering customers a compounded version of semaglutide, the active ingredient found in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is selling a month’s supply of this weight loss medication for $199, significantly less than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
Due to a limited supply of these highly sought-after medications, several telehealth companies are capitalizing on a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage. Compounding involves tailoring an approved medication by a licensed pharmacist or physician to cater to the individual needs of a patient.
While the Food, Drug, and Cosmetic Act typically prohibits compounding drugs that merely replicate commercially available medications, drugs deemed to be in shortage are not classified by the U.S. Food and Drug Administration (FDA) as commercially available.
Schultz told Bloomberg that the company has a “long future” in selling compounded semaglutide and expressed confidence that pharmacies will continue to be able to produce it even after shortages are resolved, citing ongoing needs for individualized patient prescriptions.