Hims & Hers, a telehealth platform catering to millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company renowned for its diabetes and obesity treatments, having held positions such as president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for Hims & Hers, stating, “The company is on a trajectory to disrupt the healthcare industry. Throughout my extensive career in pharmaceuticals, this is the first organization I’ve encountered that utilizes modern tools to dismantle barriers and transform how individuals access necessary health solutions. I’m excited to be part of this journey.”
On the stock market, shares of Hims & Hers rose by 3% during morning trading, marking a 125% increase since the start of the year.
This announcement follows Hims & Hers’ introduction of a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both developed by Novo Nordisk. The company offers a month’s supply of this weight loss treatment for $199, significantly less than the nearly $1,000 price of Ozempic and the $1,349 cost for Wegovy.
The scarcity of these sought-after branded medications has prompted several telehealth companies to exploit a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded drug versions that are in shortage. Compounding involves custom-making an approved drug by a licensed pharmacist or physician to cater to the specific needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act forbids the compounding of drugs that merely duplicate commercially available alternatives. However, the U.S. Food and Drug Administration (FDA) does not classify drugs that are currently in shortage as commercially available.
In comments made to Bloomberg, Schultz conveyed confidence in the long-term prospects of selling compounded semaglutide. When questioned about pharmacies’ ability to continue producing compounded semaglutide post-shortage, he indicated that there would still be cases necessitating individualized prescriptions.