Hims & Hers, a telehealth platform catering primarily to millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at Novo Nordisk, a pharmaceutical company recognized for its diabetes and obesity medications, where he held various positions including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical Industries.
In a press release, Schultz expressed enthusiasm for his new role, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, I have never encountered a company that effectively utilizes modern tools to dismantle barriers and transform how people access essential health solutions. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers stock rose by 3% during Monday morning trading, marking an impressive 125% increase since the year’s start.
This development follows Hims & Hers’ launch of a compounded version of semaglutide, the active component in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is now offering a month’s supply of this weight loss drug for $199, significantly less than the nearly $1,000 price tag for Ozempic and $1,349 for Wegovy.
The high demand and limited availability of these brand-name drugs have prompted several telehealth platforms to utilize 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 cater to the specific requirements of individual patients.
While the Food, Drug, and Cosmetic Act generally restricts compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In a conversation with Bloomberg on Monday, Schultz stated that the company envisions a “long future” in offering compounded semaglutide. When asked about the future of compounding semaglutide once shortages are resolved, Schultz expressed confidence that there would still be instances where patients require specialized prescriptions.