Telehealth platform Hims & Hers announced on Monday the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors. Schultz, who has over 25 years of experience at the Danish pharmaceutical company known for its diabetes and obesity treatments, is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm about joining Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical industry, 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 rose by 3% during the morning trading session. The company’s shares have experienced a significant increase, up 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. The company prices a month’s supply of the weight loss medication at $199, which is significantly less than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
Due to the limited supply of these sought-after, high-priced brand-name drugs, several telehealth platforms have utilized a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications when there is a shortage.
Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the specific needs of an individual patient. While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that are mere copies of market-available medications, substances in shortage are not classified as commercially available by the U.S. Food and Drug Administration (FDA).
Schultz commented to Bloomberg on Monday that Hims & Hers has a “long future” ahead in selling compounded semaglutide. When asked whether pharmacies would still be able to produce compounded semaglutide after shortages have resolved, Schultz reassured that there will continue to be circumstances requiring individualized prescriptions.