Hims & Hers, a telehealth platform targeting millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company, particularly known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his enthusiasm for Hims & Hers, stating, “This is the first company I have seen leveraging modern tools to effectively break down barriers and change the way people access health solutions. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers shares rose by 3% during Monday’s morning trading and have seen an increase of 125% since the start of the year.
This update follows Hims & Hers’ recent move to offer a compounded version of semaglutide, the key ingredient in well-known diabetes and weight loss drugs Ozempic and Wegovy, which are manufactured by Novo Nordisk. The company is selling a month’s supply of this weight loss medication for $199, significantly lower than the list prices of Ozempic and Wegovy, which approach $1,000 and $1,349, respectively.
The demand for these expensive brand-name medications has led several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act allowing the sale of compounded medications in shortages. Compounding involves customizing an existing approved drug by a licensed pharmacist or physician to better suit individual patient needs.
Generally, the act restricts compounding drugs that merely replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs deemed in shortage as commercially available.
In a conversation with Bloomberg on Monday, Schultz indicated that the company envisions a “long future” in offering compounded semaglutide. He noted that even after shortages are resolved, there will still be scenarios requiring individualized prescriptions, alleviating any concerns about pharmacies ceasing to provide compounded semaglutide.