The telehealth platform Hims & Hers, which primarily targets millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz has dedicated over 25 years to the Danish pharmaceutical company known for its diabetes and obesity treatments, holding various positions including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz remarked, “Hims & Hers is on a trajectory to upend the healthcare industry. Throughout my extensive career in pharmaceuticals, this is the first company I’ve seen that is utilizing modern tools to dismantle barriers and transform how individuals access essential health solutions to live their best lives. I’m excited to join this journey.”
Following the announcement, Hims & Hers saw a 3% increase in its stock during Monday’s morning trading, marking a 125% rise since the start of the year.
This news arrives just months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk.
The company offers a month’s supply of the weight loss drug for $199, significantly lower than Ozempic’s approximately $1,000 list price and Wegovy’s $1,349.
The scarcity of these high-demand medications has prompted several telehealth services to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are currently in short supply. Compounding involves tailoring a licensed drug by a pharmacist or physician to suit the specific needs of a patient.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are direct copies of commercially available products. Nonetheless, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in short supply as commercially available.
Schultz informed Bloomberg on Monday that he sees a “long future” for the company in the sale of compounded semaglutide. When questioned about the future of compounded semaglutide prescriptions post-shortages, Schultz expressed confidence, noting that there will continue to be situations where patients require personalized prescriptions.