Hims & Hers, a telehealth platform geared towards millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz, who has spent over 25 years with the Danish pharmaceutical company renowned for its diabetes and obesity treatments, previously held the roles of president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers, stating, “This is the first company I have seen in my extensive career in the pharmaceutical industry that is using modern tools to dismantle barriers and reshape the way people access essential health solutions. I’m excited to contribute to this journey.”
Hims & Hers shares rose 3% during Monday’s morning trading, with the stock price increasing 125% since the start of the year.
This announcement follows Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient found in the well-known diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk.
The company is offering a month’s supply of the weight loss treatment for $199, significantly lower than Ozempic’s approximate $1,000 price and Wegovy’s $1,349 price.
The scarcity of these in-demand branded medications has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded alternatives for medications that are in short supply.
Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit individual patient needs.
While the Food, Drug, and Cosmetic Act typically prohibits compounding drugs that are merely replicas of commercially available options, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz expressed confidence in the future of selling compounded semaglutide. He noted that he is not concerned about the ability of pharmacies to produce compounded semaglutide even after the shortages are resolved, as there will always be cases where patients require specialized prescriptions.