Hims & Hers, a telehealth platform favored by millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz has over 25 years of experience at the Danish pharmaceutical company, which is known for its diabetes and obesity treatments. He held various positions, including president and chief operating officer, and is now the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “In my extensive career in the pharmaceutical sector, this is the first company I’ve encountered that effectively utilizes modern technology to eliminate barriers and reshape how individuals access necessary health solutions for a better quality of life. I’m excited to be part of this journey.”
The announcement coincided with a 3% increase in Hims & Hers stock during Monday morning trading, marking a 125% rise since the start of the year.
This news follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company offers a month’s supply of the weight loss medication for $199, significantly lower than the nearly $1,000 cost of Ozempic and $1,349 for Wegovy.
The limited availability of these high-demand, pricey brand-name drugs has prompted various telehealth platforms to leverage a provision in the Food, Drug, and Cosmetic Act that permits sales of compounded versions of medications that are experiencing shortages.
Compounding involves customizing an approved drug by licensed pharmacists or physicians to cater to specific patient needs. 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 in shortage as commercially available.
Schultz stated to Bloomberg on Monday that the company sees a “long future” in the sale of compounded semaglutide. When asked about the ability of pharmacies to produce compounded semaglutide once the shortages are resolved, Schultz expressed confidence, noting that there will still be scenarios requiring individualized prescriptions.