Hims & Hers, a telehealth platform popular among millennials, announced on Monday the appointment of Kåre Schultz, a former long-term executive at Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at the Danish pharmaceutical company, which is well-known for its diabetes and obesity treatments. He has held various positions, including president and chief operating officer, and is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for Hims & Hers, stating, “This company is on a trajectory to upend the healthcare industry. It is the first organization I’ve encountered that effectively utilizes modern resources to eliminate barriers and change how people access essential health solutions to lead fulfilling lives. I’m excited to be part of this journey.”
Hims & Hers saw a 3% rise in stock value during Monday morning trading, with shares climbing 125% since the start of the year.
This development follows Hims & Hers’ recent decision to provide customers with a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is offering a month’s supply of this weight loss drug for $199, significantly less than Ozempic’s nearly $1,000 price and Wegovy’s $1,349 list price.
The limited availability of these high-demand, expensive brand-name drugs has led several telehealth companies to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of medications that are in shortage. Compounding involves tailoring an approved drug by a licensed pharmacist or physician to meet the unique needs of a patient.
Generally, the Food, Drug, and Cosmetic Act prohibits compounding drugs that merely replicate commercially available medications. However, drugs categorized as being in shortage are not considered commercially available by the U.S. Food and Drug Administration (FDA).
Schultz indicated to Bloomberg on Monday that Hims & Hers has a promising future in supplying compounded semaglutide. When questioned about whether pharmacies would continue to produce compounded semaglutide after shortages subside, Schultz reassured that there would still be situations where patients require personalized prescriptions.