The telehealth platform Hims & Hers, which primarily targets millennials, announced on Monday the appointment of Kåre Schultz, a former executive from Novo Nordisk, to its board of directors.
Kåre Schultz has over 25 years of experience at Novo Nordisk, a leading company in 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 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 shares saw a 3% increase in value during Monday morning trading, marking a significant 125% rise since the start of the year.
This development follows Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, which are produced by Novo Nordisk. The company is offering a month’s supply of the weight loss drug for $199, significantly less than the nearly $1,000 price of Ozempic and $1,349 for Wegovy.
The scarcity of these high-demand branded medications has allowed several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded forms of drugs that are in short supply. Compounding involves a state-licensed pharmacist or physician customizing an approved drug to cater to the unique needs of a patient.
Although the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that are merely copies of commercially available ones, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz noted that Hims & Hers has a “long future” in the sale of compounded semaglutide. When questioned about the ability of pharmacies to continue providing compounded semaglutide after the shortages, Schultz indicated confidence in the ongoing need for individualized prescriptions.