Hims & Hers, a telehealth platform popular among millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has an extensive background, having spent over 25 years at Novo Nordisk, a company renowned for its diabetes and obesity treatments. During his tenure, he held various roles, including president and chief operating officer, and he currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his excitement 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’ stock rose by 3% in early trading, and shares have increased by 125% since the start of the year.
The news coincides with Hims & Hers’ recent offering of a compounded version of semaglutide, the active ingredient in popular medications such as Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers is marketing a month’s supply of this weight-loss medication at $199, significantly lower than Ozempic’s list price of almost $1,000 and Wegovy’s $1,349 price.
Due to the limited availability of these expensive brand-name drugs, several telehealth platforms are utilizing a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet specific patient needs.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that replicate commercially available medications. However, drugs in short supply do not fall into this category according to the U.S. Food and Drug Administration (FDA).
In a conversation with Bloomberg, Schultz remarked that Hims & Hers has a “long future” in providing compounded semaglutide. When asked about the availability of compounded semaglutide after shortages are resolved, Schultz expressed confidence, stating there would still be cases where patients would require individualized prescriptions.