Hims & Hers, a telehealth platform that caters largely to millennials, announced on Monday the appointment of Kåre Schultz, a former executive of Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various positions, including president and chief operating officer. He currently serves as CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm, 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 shares rose by 3% during Monday morning trading, marking a 125% increase since the start of the year.
This news arrives shortly after Hims & Hers began offering a compounded version of semaglutide, which is the active component in popular diabetes and weight loss drugs such as Ozempic and Wegovy, both manufactured by Novo Nordisk. The company prices a month’s supply of its weight loss medication at $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349.
The limited availability of these sought-after and high-cost brand name medications has allowed several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medication when the originals are in short supply. Compounding involves customizing a licensed medication by a state-licensed pharmacist or physician to address an individual patient’s specific needs.
Ordinarily, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are merely replicas of commercially available products. However, drugs classified as in shortage by the U.S. Food and Drug Administration (FDA) do not fall under this commercial availability restriction.
Schultz also told Bloomberg on Monday that Hims & Hers has a “long future” in the compounded semaglutide market. When questioned about whether pharmacies could continue to produce compounded semaglutide after the shortages are resolved, Schultz remained optimistic, citing the ongoing need for personalized prescriptions for patients.