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 has dedicated over 25 years to Novo Nordisk, renowned for its diabetes and obesity treatments, where he has held various positions, including president and chief operating officer. Currently, he serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about being part of Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. 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.”
Following the announcement, Hims & Hers’ stock rose by 3% in Monday morning trading, and the company has seen a 125% increase in shares since the start of the year.
This development follows Hims & Hers recently introducing a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss treatments Ozempic and Wegovy, both manufactured by Novo Nordisk. Hims & Hers is offering a month’s supply of the weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349.
The demand for these expensive brand-name drugs has led several telehealth companies to utilize a provision in the Food, Drug, and Cosmetic Act, which allows for the sale of compounded medications that are in shortage. Compounding involves customizing an approved drug by a licensed pharmacist or physician to meet specific patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are exact copies of commercially available medications. However, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz stated in an interview with Bloomberg that Hims & Hers anticipates a “long future” in providing compounded semaglutide. He reassured that the need for individualized prescriptions would still exist even after shortages are resolved.