Telehealth platform Hims & Hers announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors. Schultz has over 25 years of experience at the Danish pharmaceutical company, where he held various roles, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining 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 saw a 3% increase in stock price during morning trading, marking a 125% rise in shares since the beginning of the year.
This news arrives just a few months after Hims & Hers introduced a compounded version of semaglutide, the key ingredient in the popular diabetes and weight loss medications Ozempic and Wegovy produced by Novo Nordisk. Hims & Hers offers a month’s supply of the weight loss drug for $199, significantly lower than the nearly $1,000 price of Ozempic and $1,349 for Wegovy.
The shortage of these high-demand brand-name drugs has prompted several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet individual patient needs.
Typically, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not consider drugs that are in shortage to be commercially available.
Schultz indicated to Bloomberg that the company sees a “long future” in selling compounded semaglutide. When asked about the ability of pharmacies to continue making compounded semaglutide after shortages are resolved, Schultz expressed confidence, noting that there will always be individual cases requiring tailored prescriptions.