Hims & Hers, a telehealth platform popular among millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz, who spent over 25 years at the Danish pharmaceutical company renowned for diabetes and obesity treatments, held various roles including president and COO. 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 shares rose by 3% during Monday morning trading, reflecting a significant 125% increase since the year began.
This development follows Hims & Hers’ recent move to offer a compounded version of semaglutide, the active ingredient in popular weight loss and diabetes medications Ozempic and Wegovy, which are manufactured by Novo Nordisk.
The company’s compounded weight loss medication is priced at $199 for a month’s supply, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The shortage of these highly sought-after drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows for the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to address individual patient needs.
Although the Food, Drug, and Cosmetic Act generally prohibits the compounding of drugs that replicate commercially available medications, the FDA does not classify drugs that are in shortage as commercially available.
Schultz indicated to Bloomberg on Monday that Hims & Hers sees a “long future” in selling compounded semaglutide. He expressed confidence that pharmacies would continue to provide compounded semaglutide even after shortages resolve, as there will still be instances where patients require tailored prescriptions.