Hims & Hers, a telehealth platform targeted towards millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, known 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.
In a press release, Schultz expressed his enthusiasm for joining Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, this is the first company I have seen that is leveraging today’s modern tools to truly break down barriers and change the status quo of how people access the health solutions they need to live their fullest lives. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers stock saw a 3% increase in morning trading, and shares have surged 125% since the start of the year.
This development comes shortly after Hims & Hers began offering compounded semaglutide, the active ingredient in well-known diabetes and weight loss medications like Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is providing a month’s supply of this weight loss medication for $199, significantly less than Ozempic’s list price of nearly $1,000 and Wegovy’s price of $1,349.
The high demand and limited availability of these brand-name drugs have led several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in shortage.
Compounding involves tailoring an approved drug by a licensed pharmacist or physician to meet the specific needs of individual patients. Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are simply replicas of commercially available medications. However, medications deemed in shortage are considered unavailable by the U.S. Food and Drug Administration (FDA).
In an interview with Bloomberg on Monday, Schultz indicated that Hims & Hers sees a “long future” in offering compounded semaglutide. He also noted that he is not concerned about pharmacies continuing to make compounded semaglutide after shortages subside, as there will still be instances where patients require individualized prescriptions.