Hims & Hers, a telehealth platform catering to millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from Novo Nordisk, a major player in diabetes and obesity treatment, where he held various positions including president and COO. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed excitement about joining Hims & Hers, stating, “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 shares rose by 3% in early trading, reflecting a 125% increase since the start of the year.
This news arrives shortly after Hims & Hers began offering a compounded version of semaglutide, the active component in popular weight loss and diabetes medications such as Ozempic and Wegovy, both manufactured by Novo Nordisk. The company sells a month’s supply of this weight loss medication for $199, significantly less than the nearly $1,000 list price of Ozempic and $1,349 for Wegovy.
The ongoing shortages of these high-demand brand-name drugs have encouraged several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded alternatives when original medications are unavailable. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to address specific needs of patients.
Generally, the Act prevents the compounding of drugs that simply replicate commercially available medications. However, the FDA does not categorize drugs in shortage as commercially available.
In a statement to Bloomberg, Schultz mentioned that Hims & Hers has a “long future” in offering compounded semaglutide. When questioned about the availability of compounded semaglutide after shortages are resolved, he reassured that there will still be situations requiring individualized prescriptions.