Hims & Hers, a telehealth platform catering primarily to millennials, announced on Monday the appointment of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz, who has over 25 years of experience at the Danish pharmaceutical firm recognized for its diabetes and obesity treatments, has held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, this is the first company I’ve encountered that is utilizing modern tools to effectively break down barriers and alter how individuals access necessary health solutions to lead fulfilling lives. I’m excited to be part of this journey.”
Following this announcement, Hims & Hers saw a 3% increase in its stock during Monday morning trading, with the share price up 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in the popular drugs Ozempic and Wegovy, which are manufactured by Novo Nordisk. The company is marketing a month’s supply of this weight loss medication for $199, significantly less than the nearly $1,000 price tag for Ozempic and $1,349 for Wegovy.
The high demand and limited availability of these brand-name drugs have prompted several telehealth services to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications in short supply. Compounding involves customizing an approved medication by a licensed pharmacist or physician to address the specific needs of patients.
While generally prohibited from compounding drugs that mirror commercially available versions, the Food, Drug, and Cosmetic Act allows for compounded drugs that are not regarded as commercially accessible due to shortages by the U.S. Food and Drug Administration (FDA).
In an interview with Bloomberg, Schultz indicated that the company sees a “long future” in selling compounded semaglutide. When asked if pharmacies would continue to produce compounded semaglutide after the shortages are resolved, Schultz expressed confidence, noting that there will still be instances where patients require tailored prescriptions.