Telehealth platform Hims & Hers announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the 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 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 saw a 3% increase in stock prices during Monday morning trading, marking a 125% rise since the start of the year.
This move comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both developed by Novo Nordisk. The company sells a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The limited availability of these highly sought-after brand-name drugs has prompted several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act, allowing the sale of compounded medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the unique needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are merely copies of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in short supply as commercially available.
Schultz informed Bloomberg on Monday that Hims & Hers intends to maintain a “long future” in selling compounded semaglutide. When asked if pharmacies would continue to compound semaglutide after the shortages are resolved, Schultz remained confident, noting that individualized prescriptions would always be necessary for certain patients.