Hims & Hers, a telehealth platform aimed at millennials, 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 medications, having held various roles including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “This company is leveraging modern tools to truly break down barriers and change the status quo of how people access the health solutions they need.” He added that he is excited to be part of the company’s journey to transform the healthcare landscape.
Following the announcement, Hims & Hers saw a 3% increase in stock prices during Monday morning trading, with shares rising 125% since the start of the year.
This news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in widely used diabetes and weight loss medications like Ozempic and Wegovy, which are produced by Novo Nordisk. The company is pricing a month’s supply of its weight loss medication at $199, significantly lower than the nearly $1,000 price of Ozempic and Wegovy’s $1,349 price tag.
The limited availability of these in-demand and costly brand-name medications has prompted several telehealth platforms to leverage a provision in the Food, Drug, and Cosmetic Act that allows them to sell compounded versions of drugs that are in short supply.
Compounding involves state-licensed pharmacists or physicians customizing an approved medication to meet an individual patient’s needs. While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not categorize drugs in short supply as commercially available.
Schultz indicated to Bloomberg that Hims & Hers intends to maintain a long-term interest in selling compounded semaglutide. Regarding the future of compounded semaglutide after the shortages resolve, he expressed confidence that personalized prescriptions would still be necessary.