Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has a rich history with the Danish pharmaceutical company, where he worked for over 25 years in various capacities, including president and chief operating officer. He currently holds the position of CEO at 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 field, this is the first company I have seen that leverages modern tools to break down barriers and change how people access health solutions they need to live their fullest lives. I’m thrilled to be a part of this journey.”
Following the announcement, shares of Hims & Hers rose by 3% during Monday morning trading, reflecting a 125% increase since the start of the year.
This development follows Hims & Hers’ recent offer of a compounded version of semaglutide, the active ingredient in popular medications Ozempic and Wegovy, both produced by Novo Nordisk. The company is selling a month’s supply of its weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 cost.
The limited availability of these sought-after, high-cost brand-name drugs has prompted several telehealth platforms to utilize a section of the Food, Drug, and Cosmetic Act that permits the sale of compounded medications during shortages. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to meet the specific needs of individual patients.
Generally, the Food, Drug, and Cosmetic Act restricts compounding 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 informed Bloomberg on Monday that Hims & Hers has a “long future” ahead in the sale of compounded semaglutide. When asked about the ability of pharmacies to continue making compounded semaglutide after the shortages have ended, Schultz expressed confidence that there would still be instances where patients require individualized prescriptions.