The telehealth platform Hims & Hers, which appeals to a millennial audience, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz, who has over 25 years of experience with the Danish pharmaceutical company, known for its diabetes and obesity treatments, held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz stated, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, this is the first company I have seen that is leveraging modern tools to genuinely break down barriers and change how people access the health solutions they need to lead fulfilling lives. I’m thrilled to be part of this journey.”
Following the announcement, Hims & Hers saw its stock rise by 3% in morning trading, with shares increasing 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, which are both manufactured by Novo Nordisk. The telehealth service sells a month’s supply of the weight loss medication for $199, significantly lower than the nearly $1,000 list price for Ozempic and the $1,349 price for Wegovy.
The demand for these high-priced brand-name drugs has prompted several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications when there is a shortage. Compounding allows state-licensed pharmacists or physicians to customize an approved drug to meet the particular needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz mentioned to Bloomberg on Monday that the company envisions a “long future” in providing compounded semaglutide. When asked whether pharmacies would still be able to produce compounded semaglutide after shortages are resolved, Schultz expressed confidence that there would continue to be instances where patients require tailored prescriptions.