The telehealth platform Hims & Hers, which caters primarily to millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has dedicated over 25 years to Novo Nordisk, known for its products in diabetes and obesity management, where he held several key positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for joining Hims & Hers, stating, “The company is on a trajectory to revolutionize the healthcare industry. Throughout my career in the pharmaceutical sector, this is the first organization I have encountered that effectively utilizes modern tools to dismantle barriers and transform how individuals access the healthcare solutions necessary for their well-being.”
On Monday morning, Hims & Hers observed a 3% increase in stock value and has seen a remarkable 125% rise since the start of the year.
This announcement comes on the heels of Hims & Hers introducing a compounded version of semaglutide, which is the active component in popular diabetes and weight loss medications, Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is offering a month’s supply of this weight loss drug for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 cost.
The shortage of these sought-after medications has prompted several telehealth companies to utilize a clause in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are not readily available.
Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet the individual needs of a patient.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that mimic commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify medications in shortage as commercially available.
Schultz conveyed to Bloomberg that Hims & Hers envisions a “long future” in the provision of compounded semaglutide. When questioned about the ability of pharmacies to continue making compounded semaglutide post-shortages, Schultz indicated he is not concerned, as patient-specific prescriptions will still be required.