Hims & Hers, a telehealth platform targeting millennials, announced on Monday the appointment of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz has spent over 25 years at 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.
In a press release, Schultz commented, “Hims & Hers is on a trajectory to upend the healthcare industry. In my long career in the pharmaceutical sector, this is the first company I have seen that is leveraging modern tools to effectively break down barriers and transform how people access essential health solutions. I’m thrilled to be part of this journey.”
Following the announcement, Hims & Hers stock gained 3% in Monday morning trading, bringing its total increase to 125% since the start of the year.
This development comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, manufactured by Novo Nordisk. The company is offering a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s list price of nearly $1,000 and Wegovy’s price of $1,349.
The high demand and limited availability of these expensive brand-name drugs have prompted several telehealth platforms to exploit 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 state-licensed pharmacist or physician to meet the unique needs of an individual patient. Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that are mere copies of commercially available products. However, the U.S. Food and Drug Administration (FDA) considers drugs in shortage as not commercially available.
In an interview with Bloomberg on Monday, Schultz indicated that Hims & Hers sees a “long future” in offering compounded semaglutide. When asked about the prospect of pharmacies continuing to produce compounded semaglutide after shortages resolve, Schultz expressed confidence, noting that patients will still require individualized prescriptions.