Telehealth platform Hims & Hers announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience in the pharmaceutical industry, having served in various roles, including as president and chief operating officer at Novo Nordisk, renowned for its diabetes and obesity medications. He is currently the CEO of Teva Pharmaceutical.
In a press statement, Schultz expressed enthusiasm for 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 Monday morning trading and has seen a remarkable increase of 125% since the start of the year.
This move comes just months after the company began offering a compounded version of semaglutide, the main ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. Hims & Hers is pricing a month’s supply of this weight loss medication at $199, significantly less than the nearly $1,000 price for Ozempic and $1,349 for Wegovy.
The shortage and high cost of these brand-name drugs have led several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet the unique needs of a patient.
Generally, the law restricts compounding of drugs that simply replicate available commercial medications. However, the U.S. Food and Drug Administration (FDA) does not consider drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz indicated that Hims & Hers has a “long future” ahead in selling compounded semaglutide. He also reassured that even after shortages are resolved, there would still be circumstances requiring individualized prescriptions for patients.