Hims & Hers, a telehealth platform targeting millennials, announced the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz has over 25 years of experience with the Danish pharmaceutical company known for its diabetes and obesity treatments, where he held various senior positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical Industries.
In a press release, Schultz expressed his excitement about joining Hims & Hers, stating, “The company is on a trajectory to upend the healthcare industry. It’s the first company I have seen that utilizes modern tools to break down barriers and change the status quo of accessing health solutions.”
Following the announcement, Hims & Hers shares rose by 3% during morning trading, bringing the total increase to 125% since the start of the year.
The timing of this news is notable as Hims & Hers recently began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications like Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is offering a month’s supply of this weight loss treatment for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s price of $1,349.
The high demand and limited availability of these brand-name medications have led several telehealth services to take advantage of a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medications in short supply. Compounding involves customizing an approved drug through a state-licensed pharmacist or physician to meet individual patient needs.
Generally, the Food, Drug, and Cosmetic Act prohibits pharmacies from compounding 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.
On Monday, Schultz told Bloomberg that Hims & Hers envisions a “long future” in providing compounded semaglutide. He reassured that even after shortages are resolved, there will still be instances requiring individualized prescriptions for patients.