Hims & Hers, a telehealth platform catering to millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz, who has over 25 years of experience at the Danish pharmaceutical company known for its diabetes and obesity treatments, has held positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers, stating, “This company 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.”
During Monday morning trading, Hims & Hers shares rose by 3%, marking a 125% increase since the start of the year.
This announcement follows Hims & Hers’ move to offer customers a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers is pricing a month’s supply of the weight loss drug at $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 cost.
The shortage of these expensive brand-name medications has prompted various telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are currently in short supply. Compounding involves customizing approved medications by licensed pharmacists or physicians to meet individual patient needs.
Normally, the Food, Drug, and Cosmetic Act forbids the compounding of drugs that replicate commercially available options. However, the U.S. Food and Drug Administration (FDA) does not consider medications in shortage as commercially available.
Schultz indicated to Bloomberg on Monday that he sees a “long future” for the company in selling compounded semaglutide. He downplayed concerns about pharmacies continuing to produce compounded semaglutide after shortages are resolved, noting that there will still be instances where individualized prescriptions are necessary.