Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He is also the current 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 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 the health solutions they need to live their fullest lives. I’m thrilled to be a part of this journey.”
During Monday morning trading, Hims & Hers’ stock rose by 3%, reflecting a significant 125% increase since the start of the year.
This announcement follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in well-known diabetes and weight-loss medications Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers offers a monthly supply of the weight-loss medication for $199, significantly lower than the nearly $1,000 price for Ozempic and $1,349 for Wegovy.
The scarcity of these highly sought-after drugs has led several telehealth platforms to exploit a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in short supply. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet individual patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts compounding drugs that mimic commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz indicated that Hims & Hers has a “long future” in selling compounded semaglutide. When asked about the potential for pharmacies to continue making compounded semaglutide after the shortages resolve, he expressed confidence that there would still be demand for personalized prescriptions.