Hims & Hers, the telehealth platform targeting millennials, announced on Monday that it has appointed Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He currently serves as CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “The company is on a trajectory to upend the healthcare industry. Throughout my long career in pharmaceuticals, this is the first company I have encountered that effectively utilizes modern tools to dismantle barriers and transform how people access essential health solutions to improve their lives. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers’ stock rose by 3% during morning trading, with shares up 125% since the beginning 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 like Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers is selling a month’s supply of the compounded weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The high demand and limited availability of these expensive brand-name drugs have prompted several telehealth platforms to leverage a part of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding is the practice of a licensed pharmacist or physician customizing an approved drug to meet the specific needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are simply replicas of commercially available medications, but drugs classified as being in shortage are not viewed by the U.S. Food and Drug Administration (FDA) as commercially available.
Schultz informed Bloomberg on Monday that Hims & Hers foresees a “long future” in the compounded semaglutide market. When asked if pharmacies would continue making compounded semaglutide after the shortages are resolved, he expressed confidence, noting that there will still be instances where patients require personalized prescriptions.