Hims & Hers, a telehealth platform targeting millennials, announced the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors on Monday.
Schultz brings over 25 years of experience from Novo Nordisk, a company renowned for its diabetes and obesity treatments, where he held various roles including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm for joining Hims & Hers, stating, “Hims & Hers is on a trajectory to upend the healthcare industry. This is the first company I have seen in my long career in the pharmaceutical industry 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.”
Following the announcement, Hims & Hers shares rose by 3% in morning trading and have increased by 125% since the start of the year.
This news arrives shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, both manufactured by Novo Nordisk. The telehealth platform is providing a month’s supply of this medication for $199, which is significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The high demand and limited availability of these brand-name drugs have prompted various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act that allows the sale of compounded versions of medications that are in short supply. Compounding involves customizing an approved drug by a licensed pharmacist or physician to suit the unique needs of a patient.
The Food, Drug, and Cosmetic Act usually prohibits the compounding of drugs that merely replicate commercially available medications. However, according to the U.S. Food and Drug Administration (FDA), drugs that are in shortage do not qualify as commercially available.
In an interview with Bloomberg, Schultz indicated that Hims & Hers sees a “long future” in offering compounded semaglutide. When asked about the continued ability of pharmacies to produce compounded semaglutide after shortages are resolved, Schultz expressed confidence, noting that there would still be instances where patients require personalized prescriptions.