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 has an extensive background in the pharmaceutical industry, having spent over 25 years at Novo Nordisk, where he held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining Hims & Hers, stating, “The company 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 health solutions.”
Following the announcement, Hims & Hers stock experienced a 3% rise during morning trading, bringing its year-to-date increase to 125%.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in well-known diabetes and weight loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. Hims & Hers is pricing a month’s supply of the weight loss drug at $199, significantly less than Ozempic’s nearly $1,000 and Wegovy’s $1,349 list prices.
Due to the limited availability of these sought-after and costly brand-name drugs, several telehealth platforms have been utilizing a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit a patient’s specific needs.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz shared with Bloomberg that Hims & Hers has a promising future in providing compounded semaglutide. He added that he is confident pharmacies will continue to be able to produce compounded semaglutide even after shortages are resolved, as individualized prescriptions will still be necessary for certain patients.