Telehealth platform Hims & Hers announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has spent more than 25 years at Novo Nordisk, a Danish pharmaceutical company known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining Hims & Hers, stating, “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.”
Following the announcement, Hims & Hers stock rose by 3% in morning trading, marking a 125% increase since the start of the year.
The timing coincides with Hims & Hers recently offering a compounded version of semaglutide, the active ingredient in Novo Nordisk’s well-known diabetes and weight loss drugs, Ozempic and Wegovy. The telehealth company is providing a month’s supply of this medication for $199, significantly lower than the nearly $1,000 cost of Ozempic and $1,349 for Wegovy.
The scarcity of these costly brand-name drugs has prompted several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding involves tailoring an approved medication by a licensed pharmacist or physician to fulfill specific patient requirements.
Typically, the Food, Drug, and Cosmetic Act bans compounding drugs that are mere replicas of commercially available medications. However, drugs classified as in shortage are not deemed commercially available by the U.S. Food and Drug Administration (FDA).
Schultz conveyed to Bloomberg on Monday that Hims & Hers has a “long future” in offering compounded semaglutide. He reassured that even after shortages are resolved, there will still be instances where patients require personalized prescriptions.