Hims & Hers, a telehealth platform catering to millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at the Danish pharmaceutical company, recognized for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. Presently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining 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 saw a 3% increase in stock prices during Monday morning trading, marking a 125% rise since the start of the year.
This development follows Hims & Hers’ introduction 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. The company offers 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.
Given the limited availability of these sought-after medications, many telehealth platforms are capitalizing on a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs in shortage. Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet the specific needs of a patient.
Usually, the Food, Drug, and Cosmetic Act prohibits the compounding of medications that replicate commercially available drugs. However, according to the U.S. Food and Drug Administration (FDA), drugs identified as being in shortage do not fall under this category.
Schultz told Bloomberg that Hims & Hers has a “long future” in offering compounded semaglutide. When pressed about the future availability of compounded semaglutide after existing shortages are resolved, Schulz expressed confidence that individualized prescriptions would still necessitate compounded options.