Hims & Hers, a telehealth platform targeting millennials, announced on Monday that Kåre Schultz, a veteran executive from Novo Nordisk, has joined its board of directors.
Schultz, who has spent over 25 years at the Danish pharmaceutical company renowned for its diabetes and obesity treatments, previously held roles such as president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press statement, Schultz remarked, “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 leveraging modern tools to genuinely dismantle barriers and transform how people access essential health solutions for their wellbeing. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers saw a 3% rise in its stock during Monday morning trading, with shares having surged 125% since the start of the year.
This announcement comes just months after Hims & Hers began offering a compounded version of semaglutide, the active component in the well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk.
The company provides a month’s supply of the weight loss medication for $199, significantly lower than the nearly $1,000 list price for Ozempic and $1,349 for Wegovy.
The limited availability of these desired and pricey branded medications has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage.
Compounding involves tailoring an approved drug by a state-licensed pharmacist or physician to address the specific needs of a patient.
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 medications in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz expressed optimism about the company’s future in selling compounded semaglutide. When questioned about the ability of pharmacies to continue compounding semaglutide after shortages are resolved, Schultz indicated he was not concerned, citing that there would still be circumstances requiring personalized prescriptions for patients.