Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience with Novo Nordisk, a company recognized for its diabetes and obesity medications, where he held various positions, including president and chief operating officer. Currently, he serves as CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for joining 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.”
Following the announcement, Hims & Hers saw a 3% increase in stock price during Monday morning trading, with shares having risen 125% since the start of the year.
This news comes shortly after Hims & Hers began offering a compounded version of semaglutide, a key ingredient in popular weight loss and diabetes medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is selling a month’s supply of this medication for $199, significantly less than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The high demand and limited supply of these expensive brand-name drugs have led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, allowing them to sell compounded versions of drugs that are in shortage. Compounding involves customizing a medication by a state-licensed pharmacist or physician based on individual patient needs.
While there are restrictions on compounding drugs that replicate commercially available medications, the Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available. Schultz mentioned to Bloomberg that the company sees a “long future” in selling compounded semaglutide and expressed confidence that needs for individualized prescriptions will persist even after shortages are resolved.