Hims & Hers, a telehealth platform catering to millennials, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from Novo Nordisk, a well-known Danish pharmaceutical company recognized 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 enthusiasm about Hims & Hers, stating, “This company 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 saw its stock price rise by 3% during morning trading, marking a 125% increase since the start of the year.
This news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is pricing a month’s supply of the weight loss drug at $199, significantly cheaper than Ozempic’s almost $1,000 price and Wegovy’s $1,349 price tag.
The increasing demand for these expensive brand-name medications has prompted several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded alternatives when drugs are in short supply. Compounding involves customizing an approved medication by a state-licensed pharmacist or physician to cater to the specific needs of a patient.
While the Food, Drug, and Cosmetic Act generally restricts compounding drugs that are mere duplicates of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz stated in a Bloomberg interview that the company envisions a “long future” in offering compounded semaglutide. When asked if pharmacies would still be able to produce compounded semaglutide after the shortages end, Schultz reassured that there would still be instances where individualized prescriptions are necessary.