Hims & Hers, a telehealth platform catering primarily to millennials, announced the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
With over 25 years of experience at Novo Nordisk, known for its diabetes and obesity treatments, Schultz held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “This company 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.”
Following the announcement, Hims & Hers stock rose by 3% in morning trading, with shares increasing by 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, which are produced by Novo Nordisk.
The company provides a month’s supply of this weight loss medication for $199, significantly less than the nearly $1,000 list price of Ozempic and the $1,349 price of Wegovy.
Due to the limited availability of these in-demand brand-name drugs, various telehealth platforms are taking advantage of a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the specific needs of individual patients.
While the Food, Drug, and Cosmetic Act typically restricts compounding drugs that mirror commercially available products, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz mentioned to Bloomberg on Monday that there is a “long future” for the company in selling compounded semaglutide, adding that he is not concerned about pharmacies continuing to provide these compounds even after shortages are resolved, as there will still be situations where patients require personalized prescriptions.