Hims & Hers, a telehealth platform popular among millennials, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz has over 25 years of experience with Novo Nordisk, a leading pharmaceutical company known for its diabetes and obesity treatments, where he held various roles, 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 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% in Monday morning trading, and the stock price has surged 125% since the start of the year.
This news 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, both manufactured by Novo Nordisk. Hims & Hers sells a month’s supply of this weight loss medication for $199, significantly less than the nearly $1,000 price for Ozempic and $1,349 for Wegovy.
The limited availability of these expensive brand-name drugs has led several telehealth services to leverage an exception in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet individual patient needs.
Typically, the Food, Drug, and Cosmetic Act does not allow compounding of drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz told Bloomberg on Monday that Hims & Hers sees a “long future” in selling compounded semaglutide. When asked about the future of compounded semaglutide after the shortages are resolved, Schultz assured that individualized prescriptions would still create a demand for this service.