Hims & Hers, a telehealth platform appealing to millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has more than 25 years of experience at Novo Nordisk, a well-known pharmaceutical company specializing in diabetes and obesity treatments, where he held various positions including president and chief operating officer. He is currently serving as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “This company is leveraging modern tools to break down barriers and change how people access the health solutions they need. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers stock rose by 3% during morning trading, marking a 125% increase since the start of the year.
This development comes after Hims & Hers recently began offering a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. The telehealth platform is offering a month’s supply of this weight loss medication for $199, significantly less than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The limited availability of these high-demand, expensive brand name drugs has prompted several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet specific patient needs.
While the Food, Drug, and Cosmetic Act typically restricts the compounding of drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not consider drugs that are in shortage to be commercially available.
Schultz indicated to Bloomberg on Monday that the company anticipates a long-term future in the sale of compounded semaglutide. He added that there will continue to be situations where patients require individualized prescriptions, regardless of whether shortages persist.