Telehealth company Hims & Hers announced on Monday that Kåre Schultz, a former executive at Novo Nordisk, has joined its board of directors.
Schultz, who has spent over 25 years at the Danish pharmaceutical firm known for its diabetes and obesity treatments, previously held the positions of president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz remarked in a press release. “Throughout my extensive career in the pharmaceutical field, this is the first company I’ve encountered that is utilizing modern tools to genuinely dismantle barriers and transform how individuals access essential health solutions. I’m excited to join this mission.”
Following the announcement, Hims & Hers shares jumped 3% during Monday morning trading and have increased by 125% since the start of the year.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is pricing a month’s supply of the weight loss drug at $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 cost.
The limited availability of these sought-after medications has prompted several telehealth companies to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are in shortage. Compounding involves customizing an approved medication by a licensed pharmacist or physician to meet the specific needs of an individual patient.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz mentioned to Bloomberg on Monday that the company sees a “long future” in offering compounded semaglutide. When asked whether pharmacies would still be able to compound semaglutide after shortages are resolved, Schultz expressed confidence, noting that there will continue to be situations requiring individualized prescriptions.