Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has an extensive background in the pharmaceutical industry, spending over 25 years at Novo Nordisk, recognized for its diabetes and obesity treatments, where he held various leadership roles including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers’ mission, stating, “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.”
Following the announcement, Hims & Hers experienced a 3% increase in stock value during morning trading, bringing its shares up 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular medications Ozempic and Wegovy, which are produced by Novo Nordisk. The company is selling a month’s supply of this weight loss medication for $199, significantly more affordable than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 price tag.
The limited availability of these high-demand brand-name drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medication in cases of shortages. Compounding involves pharmacists or physicians customizing an approved drug to meet the unique needs of individual patients.
While the Food, Drug, and Cosmetic Act generally prohibits creating compounded drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) recognizes drugs that are in shortage as not being commercially available.
Schultz further mentioned in an interview with Bloomberg that Hims & Hers has a “long future” in providing compounded semaglutide, and expressed confidence that the need for individualized prescriptions would remain even after shortages are resolved.