Telehealth platform Hims & Hers announced on Monday that Kåre Schultz, a former executive at Novo Nordisk, has joined its board of directors.
Schultz, who has over 25 years of experience at Novo Nordisk, where he held various roles including president and chief operating officer, is currently the CEO of Teva Pharmaceutical. He stated, “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.”
The announcement led to a 3% increase in Hims & Hers stock during Monday morning trading, with shares up 125% since the start of the year.
This development follows Hims & Hers’ recent offering of a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. Hims & Hers sells a month’s supply of this medication for $199, significantly lower than Ozempic’s almost $1,000 list price and Wegovy’s $1,349 price.
The limited supply of these high-demand medications has encouraged several telehealth platforms to utilize 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 FDA-approved drug by a licensed pharmacist or physician to meet a patient’s specific needs.
Generally, the Food, Drug, and Cosmetic Act restricts compounding medications that merely replicate commercially available products. However, medications that are in shortage do not fall under the U.S. Food and Drug Administration (FDA)’s definition of commercially available.
Schultz informed Bloomberg on Monday that he sees a “long future” for the company in the sale of compounded semaglutide. When asked about the ability of pharmacies to continue producing compounded semaglutide after shortages end, Schultz expressed confidence, stating there will still be instances where patients require tailored prescriptions.