Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a veteran of Novo Nordisk, to its board of directors.
Schultz has an extensive background at the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer over his 25 years there. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining Hims & Hers, stating, “This company is poised to transform the healthcare landscape. Throughout my extensive career in the pharmaceutical sector, I have not encountered a company that is effectively utilizing modern technologies to remove obstacles and redefine how individuals access necessary health solutions for their overall well-being. I am excited to be part of this endeavor.”
On the day of the announcement, Hims & Hers saw its stock rise by 3%, bringing the total increase to 125% since the start of the year.
The news follows Hims & Hers’ recent introduction of compounded semaglutide, the ingredient found in popular diabetes and weight loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. Hims & Hers is offering a month’s supply of the weight loss drug for $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The surge in demand for these brand-name medications, which are in limited supply, has motivated several telehealth companies to offer compounded alternatives under a provision in the Food, Drug, and Cosmetic Act that permits the sale of customized versions of drugs in shortage.
Compounding refers to the process where a state-licensed pharmacist or physician modifies an approved drug to cater to the specific needs of a patient. While the law typically prohibits the creation of compounded drugs that replicate commercially available products, the FDA considers drugs in shortage as not meeting the criteria for commercial availability.
Schultz remarked to Bloomberg that Hims & Hers has a promising future ahead in the compounded semaglutide market. When asked about the potential for pharmacies to create compounded semaglutide post-shortages, Schultz indicated he was confident that there would still be a demand for tailored prescriptions.