The telehealth platform Hims & Hers, which targets a millennial audience, announced on Monday that Kåre Schultz, a veteran executive from Novo Nordisk, has joined its board of directors.
Schultz has more than 25 years of experience with the Danish pharmaceutical company, recognized for its diabetes and obesity treatments, having held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “In my extensive career in the pharmaceutical industry, this is the first company I’ve encountered that utilizes modern tools to effectively dismantle barriers and transform how individuals access essential health solutions for a fulfilling life. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in its stock price during Monday morning trading, with shares up 125% since the start of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers sells a month’s supply of this weight loss treatment for $199, significantly less than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349.
The high demand and limited availability of these popular and costly branded drugs have led several telehealth platforms to leverage a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages.
Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to accommodate the specific requirements of individual patients. While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that replicate commercially available medications, drugs that are in shortage are not regarded as commercially available by the U.S. Food and Drug Administration (FDA).
Schultz mentioned to Bloomberg on Monday that the company has a “long future” in providing compounded semaglutide. When asked whether pharmacies would continue to be able to compound semaglutide after the shortages are resolved, Schultz expressed confidence that there will still be circumstances where patients require individualized prescriptions.