Hims & Hers, a telehealth platform targeting millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
With over 25 years of experience at Novo Nordisk, known for its diabetes and obesity treatments, Schultz has held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz remarked, “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 truly leveraging modern tools to break down barriers and redefine how people access essential health solutions. I’m excited to be part of this journey.”
Following the announcement, Hims & Hers saw a 3% increase in its stock price during Monday morning trading, bringing the company’s shares up 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 well-known diabetes and weight loss medications Ozempic and Wegovy from Novo Nordisk. The company is currently selling a month’s supply of this weight loss drug for $199, significantly less expensive than Ozempic’s nearly $1,000 list price and Wegovy’s $1,349 price.
The rising demand and limited supply of these high-cost brand-name drugs have led various telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, allowing the sale of compounded medications that are in shortage. Compounding entails customizing an approved drug by a licensed pharmacist or physician to cater to the unique needs of a specific patient.
While the Food, Drug, and Cosmetic Act typically prohibits the compounding of drugs that are merely replicas of commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
In an interview with Bloomberg on Monday, Schultz expressed confidence in the company’s “long future” with compounded semaglutide. He added that he is not concerned about pharmacies continuing to make compounded semaglutide after the shortages are resolved, as there will still be instances where individualized prescriptions are necessary.