Hims & Hers, the telehealth platform focused on millennials, announced on Monday the addition of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz brings over 25 years of experience from the Danish pharmaceutical company known for its diabetes and obesity treatments, where he held various positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
“Hims & Hers is on a trajectory to upend the healthcare industry,” Schultz stated in a press release. “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.”
The company’s stock increased by 3% during morning trading on the announcement, marking a 125% rise since the start of the year.
This news follows Hims & Hers’ recent launch of a compounded version of semaglutide, the active ingredient in the well-known diabetes and weight loss drugs Ozempic and Wegovy, both manufactured by Novo Nordisk. The telehealth platform is offering a month’s supply of the weight loss medication for $199, significantly lower than Ozempic’s approximate $1,000 price and Wegovy’s $1,349 cost.
The scarcity of these sought-after and pricey brand-name drugs has prompted various telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that allows for the sale of compounded versions of medications that are in shortage. Compounding involves customizing an FDA-approved drug by a state-licensed pharmacist or physician to address specific patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that merely replicate commercially available medications. However, medications in short supply are not classified by the U.S. Food and Drug Administration (FDA) as commercially available.
In an interview with Bloomberg, Schultz expressed confidence in the company’s future in selling compounded semaglutide. When questioned about whether pharmacies would continue to compound semaglutide after the shortage is resolved, he indicated he is not concerned, as patients will still require tailored prescriptions.