Hims & Hers, a telehealth platform catering to millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors. Schultz, who has over 25 years of experience in the pharmaceutical industry, previously held various roles including president and COO at Novo Nordisk, which is known for its diabetes and obesity treatments. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his 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.”
Following the announcement, shares of Hims & Hers rose by 3% in morning trading, contributing to a remarkable 125% increase since the start of the year.
This development follows Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. Hims & Hers offers a month’s supply of semaglutide at $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349.
The shortage of these in-demand, high-cost medications has led several telehealth platforms to exploit a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are scarce. Compounding is the process in which a state-licensed pharmacist or physician customizes an approved drug to meet specific patient needs.
While the Act typically prohibits compounding drugs that replicate commercially available medications, the FDA does not classify drugs in shortage as commercially available.
In a statement to Bloomberg, Schultz emphasized the company’s commitment to offering compounded semaglutide, suggesting a stable future for its sale even after current shortages are resolved, as there will still be instances where individualized prescriptions are necessary.