Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz boasts over 25 years of experience with the Danish pharmaceutical company, recognized 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 his new role, 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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers experienced a 3% increase in stock price during Monday morning trading, marking a 125% rise since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is providing a month’s supply of the weight loss drug for $199, significantly less than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 price tag.
The scarcity of these high-demand and costly brand-name drugs has prompted multiple telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications facing shortages. Compounding involves modifying an approved medication by a licensed pharmacist or physician to address specific patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts compounding medications that are merely replicas of commercially available drugs. However, the U.S. Food and Drug Administration (FDA) does not categorize drugs in shortage as commercially available.
On Monday, Schultz told Bloomberg that Hims & Hers envisions a “long future” in offering compounded semaglutide. When questioned about the future of compounded semaglutide once shortages are resolved, Schultz indicated he was not concerned, citing ongoing cases where patients require individualized prescriptions.