Hims & Hers, a telehealth platform with a focus on millennials, announced on Monday the appointment 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, which is well-known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to transform the healthcare industry,” Schultz stated in a press release. “In my extensive career in pharmaceuticals, I have never seen a company that utilizes modern tools to effectively dismantle barriers and change how individuals access necessary health solutions to enhance their lives. I am excited to join this journey.”
Following the announcement, Hims & Hers shares rose 3% in Monday morning trading, and the stock has increased by 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in the widely used diabetes and weight-loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is pricing a month’s supply of the weight loss drug at $199, significantly cheaper than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349.
The high demand and limited availability of these brand-name drugs have prompted several telehealth services to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded drugs in cases of drug shortages. Compounding involves the creation of tailored medications by licensed pharmacists or physicians to address the specific needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are mere copies of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz expressed confidence in the company’s “long future” of selling compounded semaglutide. He further indicated that he is unconcerned about the discontinuation of compounded semaglutide after shortages are resolved, citing ongoing patient needs for individualized prescriptions.