Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, recognized for its diabetes and obesity treatments, where he held various roles including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz remarked, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, this is the first company I’ve seen utilizing modern tools to break down barriers and transform access to necessary health solutions for individuals.” He expressed enthusiasm about joining the company’s mission.
Following the announcement, Hims & Hers shares surged 3% during morning trading, contributing to a remarkable 125% increase in stock value since the start of the year.
This development arrives shortly after Hims & Hers commenced offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss treatments Ozempic and Wegovy, manufactured by Novo Nordisk. The telehealth company is marketing a month’s supply of this weight loss medication for $199, significantly more affordable than Ozempic, which has a list price of nearly $1,000, and Wegovy, priced at $1,349.
The rising demand for these expensive brand-name drugs has prompted several telehealth platforms to leverage a provision in the Food, Drug, and Cosmetic Act, enabling the sale of compounded medications when shortages occur. Compounding involves tailoring an approved medication by a licensed pharmacist or physician to address the specific needs of patients.
While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that merely replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz stated in an interview with Bloomberg that the company anticipates a “long future” in the sale of compounded semaglutide. When inquired about the continuation of compounded semaglutide after shortages end, Schultz expressed confidence that there would still be circumstances requiring individualized prescriptions for patients.