Hims & Hers, a telehealth platform aimed at millennials, announced on Monday that Kåre Schultz, a veteran executive from Novo Nordisk, has joined its board of directors.
Schultz has extensive experience, having spent over 25 years at Novo Nordisk, known for its diabetes and obesity treatments, where he held various senior positions, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “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.”
The announcement contributed to a 3% increase in Hims & Hers stock during Monday morning trading, with shares soaring 125% since the start of the year.
This development follows Hims & Hers’ recent introduction of a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight-loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. Hims & Hers is pricing a month’s supply of this weight loss medication at $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The demand for these high-cost medications has led several telehealth platforms to capitalize on provisions of the Food, Drug, and Cosmetic Act, which permit the sale of compounded medications when the original drugs are in short supply. Compounding allows licensed pharmacists or physicians to modify approved drugs to cater to individual patient needs.
Normally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that simply replicate commercially available products. However, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
In an interview with Bloomberg, Schultz noted that Hims & Hers has a promising future in offering compounded semaglutide. He expressed confidence that pharmacists will continue to be able to create compounded versions even after current shortages are resolved, as personalized prescriptions will still be necessary for some patients.