Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz boasts over 25 years of experience at the Danish pharmaceutical company, which is recognized for its diabetes and obesity treatments, holding positions such as president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm, 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.”
The announcement resulted in a 3% increase in Hims & Hers stock during Monday morning trading, bringing its year-to-date increase to 125%.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in popular weight loss and diabetes medications Ozempic and Wegovy, both manufactured by Novo Nordisk.
Hims & Hers is providing a month’s supply of this weight loss medication for $199, which is significantly lower than the nearly $1,000 list price for Ozempic and $1,349 for Wegovy.
The limited availability of these expensive brand-name drugs has prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act allowing the sale of compounded versions of medications that are in shortage. Compounding involves tailoring an approved drug to meet the unique needs of a patient by a licensed pharmacist or physician.
While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that duplicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz mentioned to Bloomberg that he sees a “long future” for the company in selling compounded semaglutide. When asked about the potential for pharmacies to continue compounding semaglutide after the shortages are resolved, he indicated that concern was not necessary, as there will still be instances where patients require customized prescriptions.