Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, who has an extensive background at Novo Nordisk, to its board of directors.
Schultz has spent over 25 years 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 enthusiasm for Hims & Hers, stating, “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 by 3% during morning trading, marking a 125% increase since the start of the year.
This development comes just months 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 produced by Novo Nordisk. The company offers a month’s supply of the weight loss drug for $199, significantly less than Ozempic’s nearly $1,000 and Wegovy’s $1,349 retail prices.
The high demand for these costly brand-name medications has led several telehealth platforms to exploit a segment of the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications that are in shortage. Compounding is a process where an approved drug is tailored by a licensed pharmacist or physician to fit an individual patient’s specific needs.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In a conversation with Bloomberg, Schultz indicated that Hims & Hers has a “long future” in retailing compounded semaglutide. He also expressed confidence that after the shortages are resolved, pharmacies would continue making compounded semaglutide to cater to patients with unique prescription needs.