Hims & Hers, a telehealth platform popular with millennials, announced on Monday the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the renowned Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various roles, including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers, stating, “The company is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical field, this is the first organization I’ve seen that is effectively utilizing modern tools to dismantle barriers and transform how people access the health solutions necessary for living their fullest lives. I’m excited to join this journey.”
Following the announcement, Hims & Hers shares increased by 3% during morning trading, marking a remarkable 125% rise since the start of the year.
This addition to the board comes just months after Hims & Hers launched a compounded version of semaglutide, the active ingredient in popular weight loss and diabetes medications Ozempic and Wegovy, both manufactured by Novo Nordisk.
The company offers a month’s supply of the weight loss drug at $199, significantly less expensive than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349.
The shortage of these high-demand and costly brand-name drugs has prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages.
Compounding involves tailoring an approved drug by a state-licensed pharmacist or physician to meet specific patient needs.
While the Food, Drug, and Cosmetic Act typically restricts the compounding of drugs that are simply duplications of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz told Bloomberg on Monday that Hims & Hers envisions a “long future” in offering compounded semaglutide. When questioned about the potential for pharmacies to continue making compounded versions of semaglutide after shortages resolve, Schultz stated he remains unconcerned, as individual patients often require customized prescriptions.