Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz, who spent more than 25 years at Novo Nordisk, held various positions including president and chief operating officer before taking on the role of CEO at Teva Pharmaceutical. In a statement, Schultz expressed his enthusiasm for Hims & Hers, stating, “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, Hims & Hers shares rose by 3% during morning trading and have seen a significant increase of 125% since the start of the year.
The news comes in the wake of Hims & Hers launching a compounded version of semaglutide, the active ingredient found in the widely-used diabetes and weight loss medications Ozempic and Wegovy, which are manufactured by Novo Nordisk. Hims & Hers is offering a month’s supply of this weight loss medication for $199, considerably lower than Ozempic’s approximate $1,000 retail price and Wegovy’s $1,349 cost.
The demand for these expensive brand-name drugs has led several telehealth providers to utilize a provision in the Food, Drug, and Cosmetic Act that permits the sale of compounded medications in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit the individual needs of a patient.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that simply replicate commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not consider drugs in shortage to be commercially available.
Schultz conveyed to Bloomberg on Monday that Hims & Hers has a “long future” ahead in providing compounded semaglutide. When asked whether pharmacies would continue to compound semaglutide after the shortages resolve, Schultz expressed confidence, noting that there would still be instances where patients require tailored prescriptions.