Telehealth platform Hims & Hers has announced the appointment of Kåre Schultz, a former long-time executive at Novo Nordisk, to its board of directors. Schultz has an extensive background in the pharmaceutical industry, having spent over 25 years at the Danish company known for its diabetes and obesity medications, where he held several senior positions including president and chief operating officer. Currently, he is the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for joining Hims & Hers, stating that the company is on a path to revolutionize the healthcare sector by utilizing modern tools to dismantle barriers in accessing health solutions. The company’s stock rose by 3% in morning trading on the day of the announcement, and it has experienced a 125% increase since the start of the year.
This news follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active component found in popular diabetes and weight loss medications like 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 the retail prices of Ozempic and Wegovy, which reach nearly $1,000 and $1,349, respectively.
The limited availability of these expensive brand-name drugs has prompted several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded medications in cases of shortage. Compounding involves a state-licensed pharmacist or physician customizing an approved drug for an individual patient’s specific needs.
While typically, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that mirror commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available. Schultz asserted to Bloomberg that Hims & Hers sees a “long future” in offering compounded semaglutide, indicating confidence that demand for individualized prescriptions will continue even after shortages are resolved.