Hims & Hers, a telehealth platform catering to millennials, announced on Monday that Kåre Schultz, a former Novo Nordisk executive, has joined its board of directors.
Schultz has over 25 years of experience with the Danish pharmaceutical company, known for its medications for diabetes and obesity, where he held various positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for 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 rose by 3% during Monday morning trading, marking a 125% increase since the year’s beginning.
This development comes on the heels of Hims & Hers beginning to offer a compounded version of semaglutide, the active ingredient in popular diabetes and weight-loss medications Ozempic and Wegovy, produced by Novo Nordisk. The company provides a month’s supply of the weight loss medication for $199, significantly less than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The high demand and limited supply of these expensive brand-name drugs have led various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications that are in short supply. Compounding involves tailoring an approved drug by licensed pharmacists or physicians to fit the specific needs of individual patients.
While the Food, Drug, and Cosmetic Act generally forbids compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz indicated to Bloomberg on Monday that the company anticipates a “long future” in offering compounded semaglutide. When questioned about whether pharmacies could continue to produce compounded semaglutide after shortages are resolved, Schultz reassured that there would still be instances requiring individualized prescriptions.