Hims & Hers, a telehealth platform popular among millennials, announced on Monday the appointment of Kåre Schultz, a former executive at 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 positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceuticals.
In a press release, Schultz expressed his enthusiasm for Hims & Hers, stating, “This company is on a trajectory to upend the healthcare industry. Throughout my extensive career in pharmaceuticals, I have not encountered a company that utilizes modern tools to effectively eliminate barriers and transform how individuals access essential health solutions. I’m excited to contribute to this journey.”
Following the announcement, Hims & Hers stock rose by 3% during Monday’s morning trading, marking a remarkable increase of 125% since the start of the year.
The news follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is offering this weight loss medication at $199 for a month’s supply, significantly lower than the nearly $1,000 list price for Ozempic and the $1,349 price for Wegovy.
Due to the limited availability of these sought-after brand name drugs, several telehealth platforms are utilizing a provision of the Food, Drug, and Cosmetic Act that allows for the sale of compounded medications during shortages. Compounding refers to the practice of tailoring an approved drug by a licensed pharmacist or physician to suit an individual patient’s needs.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that merely replicate commercially available medications, drugs deemed in shortage are not classified as commercially available by the U.S. Food and Drug Administration (FDA).
In comments to Bloomberg, Schultz mentioned that the company envisions a “long future” in offering compounded semaglutide. He also indicated that he remains unconcerned about pharmacies’ ability to produce compounded semaglutide after shortages are resolved, as there will still be instances where patients require personalized prescriptions.