Hims & Hers, a telehealth platform catering to millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at Novo Nordisk, a Danish pharmaceutical company recognized for its diabetes and obesity treatments, where he held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “The company is on a trajectory to transform the healthcare industry. This is the first company I have encountered in my extensive pharmaceuticals career that is effectively using modern tools to eliminate barriers and modify the traditional access to health solutions for individuals to lead fulfilling lives.”
Following the announcement, Hims & Hers stock rose by 3% during Monday morning trading, marking a 125% increase since the start of the year.
This development coincides with Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications, Ozempic and Wegovy, both of which are manufactured by Novo Nordisk. Hims & Hers offers a month’s supply of this medication for $199, which is significantly lower than the list prices of Ozempic at nearly $1,000 and Wegovy at $1,349.
The limited availability of these highly sought-after and costly brand-name drugs has led several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications that are currently in shortage.
Compounding involves tailoring an approved medication by a licensed pharmacist or physician to cater to the specific needs of an individual patient.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are merely replicas of existing commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In comments to Bloomberg, Schultz indicated that the company has a “long future” in offering compounded semaglutide. When inquired about the production of compounded semaglutide after shortages resolve, Schultz responded that he is not concerned, as there will always be instances where patients require personalized prescriptions.