Hims & Hers, a telehealth platform targeting millennials, revealed on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz, who has over 25 years of experience with the Danish pharmaceutical company renowned for its diabetes and obesity treatments, previously held positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz stated, “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 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 require to live their fullest lives. I’m thrilled to be a part of this journey.”
Following this announcement, Hims & Hers shares rose by 3% during morning trading, marking a 125% increase since the year began.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is pricing a month’s supply of the weight loss treatment at $199, significantly lower than Ozempic’s nearly $1,000 and Wegovy’s $1,349 list prices.
The scarcity of these expensive branded medications has prompted various 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 the customization of an approved drug by a licensed pharmacist or physician to meet an individual patient’s specific needs. While the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that are merely copies of commercially available medications, the U.S. Food and Drug Administration (FDA) does not categorize drugs in shortage as commercially available.
In comments to Bloomberg, Schultz expressed confidence in the company’s future in selling compounded semaglutide. He also noted that he does not foresee issues for pharmacies producing compounded semaglutide even after the shortages are resolved, as individualized prescriptions will still be necessary for certain patients.