Hims & Hers, a telehealth platform targeting millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz, who has more than 25 years of experience with the Danish pharmaceutical company known for its diabetes and obesity treatments, has held various key positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers’ potential, 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 leverages today’s modern tools to truly break down barriers and change 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 and has increased 125% since the start of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight loss drugs Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers prices its compounded weight loss medication at $199 per month, significantly lower than the nearly $1,000 price of Ozempic and the $1,349 tag for Wegovy.
Due to the limited availability of these high-demand brand-name drugs, several telehealth platforms are capitalizing on a provision of the Food, Drug, and Cosmetic Act that permits selling compounded versions of medications in short supply. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to suit an individual patient’s needs.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz indicated to Bloomberg on Monday that Hims & Hers has a “long future” in providing compounded semaglutide. When asked about the future of compounded semaglutide after existing shortages are resolved, he expressed confidence that there would still be instances requiring tailored prescriptions.