Telehealth platform Hims & Hers announced on Monday the appointment of Kåre Schultz, a former senior executive at Novo Nordisk, to its board of directors. Schultz boasts over 25 years of experience at the Danish pharmaceutical company, where he held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
Schultz expressed enthusiasm about joining Hims & Hers, stating in a press release, “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.”
On the day of the announcement, Hims & Hers shares rose by 3%, contributing to a 125% increase in stock value since the start of the year.
This development comes just months after Hims & Hers began offering customers a compounded version of semaglutide, a key ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is selling a month’s supply of this weight loss medication for $199, significantly less than the nearly $1,000 price of Ozempic and the $1,349 price for Wegovy.
The limited availability of these sought-after and costly brand-name drugs has prompted various telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act, allowing the sale of compounded versions of medications that are currently in shortage. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to cater to the specific needs of individual patients.
Generally, the Act restricts compounding drugs that merely replicate commercially available medications. However, drugs that are in shortage are not classified by the U.S. Food and Drug Administration (FDA) as commercially available.
Schultz commented to Bloomberg that Hims & Hers has a “long future” in providing compounded semaglutide. When asked if pharmacies would continue to produce compounded semaglutide after shortages are resolved, Schultz indicated he was not concerned due to the ongoing need for personalized prescriptions.