Hims & Hers, a telehealth platform catering to millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz, who has over 25 years of experience with the Danish pharmaceutical company known for its diabetes and obesity drugs, held multiple roles including president and chief operating officer. Currently, he serves as the 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. In my long career in the pharmaceutical sector, this is the first organization I have seen that effectively utilizes modern tools to dismantle barriers and transform how individuals access the health solutions necessary for their well-being.”
Following this announcement, Hims & Hers shares rose by 3% during Monday’s morning trading, reflecting a significant 125% increase since the start of the year.
This news comes in the wake of Hims & Hers beginning to offer a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. The telehealth platform markets a month’s supply of this medication at $199, which is considerably lower than the nearly $1,000 price for Ozempic and $1,349 for Wegovy.
The limited availability of these in-demand and high-priced brand-name drugs has led several telehealth services to utilize a provision in the Food, Drug, and Cosmetic Act, permitting the sale of compounded medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to cater to an individual patient’s needs.
While the Food, Drug, and Cosmetic Act generally forbids the compounding of drugs that are mere replicas of available commercial medications, the U.S. Food and Drug Administration (FDA) does not classify short supply drugs as commercially available.
On Monday, Schultz shared with Bloomberg that he envisions a “long future” for the company in selling compounded semaglutide. When asked about the potential for pharmacies to continue offering compounded semaglutide after shortages are resolved, he conveyed confidence, stating that there will be ongoing needs for personalized prescriptions.