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 comes with over 25 years of experience at Novo Nordisk, a Danish pharmaceutical company known for its diabetes and obesity treatments, where he held various leadership positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for joining Hims & Hers, stating, “This company is on a trajectory to upend the healthcare industry. Throughout my extensive career in pharmaceuticals, I have never encountered a company that uses modern tools to effectively dismantle barriers and transform how individuals access necessary health solutions.”
Following the announcement, Hims & Hers shares rose by 3% during Monday morning trading and have surged 125% since the year began.
This development occurs just months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the popular diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. The company sells a month’s supply of its weight loss medication for $199, significantly more affordable than Ozempic and Wegovy, which have list prices near $1,000 and $1,349, respectively.
The limited availability of these expensive brand-name drugs has prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications that are in short supply. Compounding involves a state-licensed pharmacist or physician customizing an approved drug to fit an individual patient’s needs.
While the Food, Drug, and Cosmetic Act generally bans the compounding of drugs that replicate commercially available medications, medications in shortage are viewed by the U.S. Food and Drug Administration (FDA) as not commercially available.
During a Bloomberg interview on Monday, Schultz mentioned that the company envisions a “long future” of offering compounded semaglutide. When questioned about the ability of pharmacies to continue making this medication after shortages are resolved, Schultz indicated he was not concerned, as there would still be instances where patients require tailored prescriptions.