Telehealth platform Hims & Hers announced on Monday the addition of Kåre Schultz, a former executive from Novo Nordisk, to its board of directors. Schultz, who has over 25 years of experience in the pharmaceutical industry, including roles as president and chief operating officer at Novo Nordisk, currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical industry, 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.”
Hims & Hers shares rose 3% during morning trading, marking a total increase of 125% since the start of the year. This announcement follows the company’s recent launch of a compounded version of semaglutide, the active ingredient in the popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers offers a month’s supply of this weight loss drug for $199, significantly less than the list prices of Ozempic at nearly $1,000 and Wegovy at $1,349.
The limited availability of these highly sought-after brand name drugs has led many telehealth companies to utilize a section of the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in short supply. Compounding involves the customization of an approved drug by licensed pharmacists or physicians to suit the specific needs of individual patients.
Typically, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are simply copies of commercially available medications. However, medications that are in shortage are not classified by the U.S. Food and Drug Administration (FDA) as commercially available. Schultz indicated to Bloomberg that Hims & Hers has a “long future” in selling compounded semaglutide and reassured that even after shortages resolve, there will still be a need for customized prescriptions.