The millennial-focused telehealth platform Hims & Hers announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various key positions, including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, this is the first company I have encountered that effectively utilizes modern tools to dismantle barriers and transform how individuals access the health solutions necessary for a fulfilling life. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers shares experienced a 3% increase during morning trading, reflecting a remarkable rise of 125% since the start of the year.
This development arrives just months after Hims & Hers began offering a compounded version of semaglutide, the primary component in well-known diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk.
The company offers a one-month supply of the weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 cost.
The limited availability of these high-demand and pricey brand-name drugs has prompted various telehealth platforms to utilize provisions of the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are currently in shortage.
Compounding involves customizing an approved drug by a licensed pharmacist or physician to address the specific needs of an individual patient.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz affirmed the company’s commitment to the compounded semaglutide market, stating there is a “long future” for this product. When queried about the future of compounded semaglutide after shortages are resolved, Schultz indicated he felt confident, noting that there would still be circumstances requiring personalized prescriptions for patients.