Hims & Hers, a telehealth platform targeting millennials, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz, who has over 25 years of experience at the Danish pharmaceutical company known for its diabetes and obesity treatments, has held various positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “In my long career in the pharmaceutical field, this is the first company I have seen that is using modern tools to truly dismantle barriers and transform access to health solutions needed for individuals to lead their best lives. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers shares rose by 3% in Monday morning trading, bringing the total increase since the start of the year to 125%.
This development follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is offering a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349.
The demand for these high-priced brand-name medications has led many telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications that are currently in shortage. Compounding involves customizing an approved drug to meet an individual patient’s needs by a state-licensed pharmacist or physician.
While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that are simply replicas of commercially available medications, the U.S. Food and Drug Administration (FDA) does not consider drugs that are in shortage to be commercially available.
Speaking to Bloomberg on Monday, Schultz mentioned that the company has a “long future” in marketing compounded semaglutide. He expressed confidence that pharmacies would still be able to create compounded semaglutide after the shortage ends, as there will continue to be instances where patients require customized prescriptions.