The telehealth platform Hims & Hers, which targets millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, recognized for its diabetes and obesity treatments, where he held various leadership positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm 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. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers shares surged 3% in morning trading, reflecting a remarkable 125% increase since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss drugs Ozempic and Wegovy, both made by Novo Nordisk. Hims & Hers is selling a month’s supply of this weight loss medication for $199, significantly cheaper than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 cost.
The ongoing shortages of these popular and pricey branded medications have prompted several telehealth platforms to explore a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of drugs that are in short supply. Compounding involves customizing an approved medicine by a licensed pharmacist or physician to address the specific needs of a patient.
Generally, the Act restricts the compounding of medications that are mere replicas of commercially available drugs. However, the U.S. Food and Drug Administration (FDA) does not classify medications in shortage as commercially available.
Schultz mentioned to Bloomberg on Monday that he sees a “long future” for Hims & Hers in the compounded semaglutide market. When asked about the potential for pharmacies to continue making compounded semaglutide after shortages resolve, he expressed confidence that individualized prescriptions would still create a demand.