The telehealth platform Hims & Hers, which primarily targets millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings more than 25 years of experience from the Danish pharmaceutical company, known for its diabetes and obesity treatments, where he held various leadership roles, including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his excitement about joining Hims & Hers, stating that the company is poised to revolutionize the healthcare industry. He noted, “In my long career in the pharmaceutical industry, 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.”
Following the announcement, shares of Hims & Hers rose by 3%, marking a 125% increase since the start of the year.
The news comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications like Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is selling a monthly supply of this weight loss drug for $199, significantly less than Ozempic’s list price of nearly $1,000 and Wegovy’s price tag of $1,349.
The high demand and limited availability of these brand-name medications have led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications when the originals are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit the specific needs of patients.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are mere copies of commercially available medications. However, medications currently in shortage are not classified by the U.S. Food and Drug Administration (FDA) as commercially available.
Schultz informed Bloomberg on Monday that the company envisions a “long future” in selling compounded semaglutide. He also mentioned that he is not concerned about whether pharmacies will continue to produce compounded semaglutide after the shortages are resolved, as there will still be circumstances in which patients require individualized prescriptions.