Hims & Hers, a telehealth platform geared towards millennials, announced on Monday the appointment of Kåre Schultz, a former executive at Novo Nordisk, to its board of directors.
Schultz, who has more than 25 years of experience with the Danish pharmaceutical company, known for its diabetes and obesity treatments, has held various positions including president and chief operating officer. He is currently the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about joining 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. I’m thrilled to be a part of this journey.”
Following the announcement, shares of Hims & Hers rose by 3% during morning trading, and the company’s stock has surged by 125% since the start of the year.
This news comes just a few months after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight loss medications Ozempic and Wegovy, which are produced by Novo Nordisk. Hims & Hers is providing a month’s supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 cost.
The ongoing shortage of these sought-after and costly brand-name drugs has prompted various telehealth providers to utilize a provision in the Food, Drug, and Cosmetic Act that permits 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 cater to the specific needs of an individual patient.
Although the Food, Drug, and Cosmetic Act generally forbids compounding drugs that duplicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs in shortage as commercially available.
Schultz shared with Bloomberg that he sees a “long future” for the company in selling compounded semaglutide. When questioned about the ability of pharmacies to continue making compounded semaglutide once shortages are resolved, Schultz indicated that he is not concerned, as there will still be instances where patients require customized prescriptions.