Hims & Hers, a telehealth platform favored by millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, renowned for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
“Hims & Hers is poised to revolutionize the healthcare sector,” Schultz stated in a press release. “Throughout my extensive career in the pharmaceutical industry, I’ve not seen a company that utilizes modern tools to significantly dismantle barriers and transform how individuals access essential health solutions. I am excited to join this initiative.”
Following the announcement, Hims & Hers stock rose by 3%, with shares increasing by 125% since the year began.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient found in well-known diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk.
The telehealth platform offers a month-long supply of the weight loss drug at $199, significantly lower than the nearly $1,000 cost of Ozempic and the $1,349 price for Wegovy.
The high demand and limited availability of these brand-name drugs have prompted several telehealth companies to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages.
Compounding involves the customization of an approved drug by a licensed pharmacist or physician to fit specific patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that merely replicate commercially available ones. However, the U.S. Food and Drug Administration (FDA) does not consider medications in shortage to be commercially available.
Schultz mentioned in an interview with Bloomberg that the company anticipates a promising future in selling compounded semaglutide.
When asked about the potential for pharmacies to continue compounding semaglutide once shortages are resolved, Schultz expressed confidence that individual patient needs would still necessitate such prescriptions.