Hims & Hers, a telehealth company focused on 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, renowned for its diabetes and obesity treatments, where he held various senior roles including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “This company is on a path to transform the healthcare industry. In my extensive career in pharmaceuticals, I have not encountered a company that utilizes modern tools to dismantle barriers and improve access to essential health solutions.”
Following the announcement, Hims & Hers stock rose by 3% in early trading, with shares surging 125% since the start of the year.
This news follows Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, produced by Novo Nordisk. Hims & Hers is offering a one-month supply of the weight loss treatment for $199, significantly lower than Ozempic’s almost $1,000 retail price and Wegovy’s $1,349.
The high demand for these branded medications, which have limited availability, has led several telehealth firms to leverage a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded drugs when their commercial counterparts are in short supply.
Compounding entails customizing an approved drug by a licensed pharmacist or physician to meet the specific needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are simply replicas of commercially available medications. However, the U.S. Food and Drug Administration (FDA) classifies drugs in shortage as not being commercially available.
During an interview with Bloomberg on Monday, Schultz indicated that Hims & Hers has a promising future in providing compounded semaglutide. When asked whether pharmacies could continue to make compounded semaglutide after current shortages are resolved, Schultz remained optimistic, citing ongoing needs for personalized prescriptions.