Hims & Hers, a telehealth platform geared towards 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 known 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 Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining Hims & Hers, stating, “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 leveraging modern tools to break down barriers and change how people access necessary health solutions. I’m thrilled to be a part of this journey.”
During Monday morning trading, Hims & Hers shares increased by 3%, and they have risen 125% since the start of the year.
This news follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in the popular diabetes and weight loss medications Ozempic and Wegovy, both produced by Novo Nordisk. Hims & Hers offers a month’s supply of the weight loss medication for $199, significantly less than Ozempic’s nearly $1,000 and Wegovy’s $1,349 retail prices.
The demand for these expensive brand-name drugs has prompted multiple telehealth platforms to utilize a section of the Food, Drug, and Cosmetic Act, which allows for the sale of compounded medications that are in short supply.
Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet an individual patient’s needs. Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are simply copies of available medications. However, the U.S. Food and Drug Administration (FDA) does not consider drugs that are in shortage to be commercially available.
Schultz told Bloomberg on Monday that the company sees a “long future” in the provision of compounded semaglutide. When questioned about the ability of pharmacies to continue making compounded semaglutide after shortages are resolved, Schultz stated he was not concerned, as there would still be instances where patients require personalized prescriptions.