Hims & Hers, a telehealth platform targeting millennials, announced the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, renowned for its diabetes and obesity treatment medications, where he held various leadership positions, including president and chief operating officer. He is currently 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 industry, 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 need to live their fullest lives. I’m thrilled to be a part of this journey.”
Following the announcement, Hims & Hers saw its stock rise by 3% during morning trading, and shares have increased by 125% since the start of the year.
This news comes shortly after Hims & Hers began offering compounded semaglutide, the active ingredient in well-known diabetes and weight loss medications Ozempic and Wegovy, which are produced by Novo Nordisk. The company is pricing a month’s supply of this weight loss medication at $199, significantly lower than Ozempic’s nearly $1,000 retail price and Wegovy’s $1,349 cost.
The demand for these expensive brand-name medications has led several telehealth providers to utilize a provision of the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of drugs that are in short supply. Compounding involves customizing an approved drug to meet the specific needs of an individual patient, typically done by a state-licensed pharmacist or physician.
While the Food, Drug, and Cosmetic Act generally restricts the compounding of drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz emphasized that Hims & Hers has a “long future” ahead in selling compounded semaglutide. When asked about the ability of pharmacies to continue making compounded semaglutide after the shortages are resolved, Schultz expressed confidence that there would still be a demand for individualized prescriptions.