Hims & Hers, a telehealth platform targeting millennials, announced the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors on Monday.
Schultz has over 25 years of experience with the Danish pharmaceutical company, known for its diabetes and obesity treatments, having served in various capacities including president and chief operating officer. He currently holds the CEO position at 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 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.”
On the same day, Hims & Hers shares rose by 3%, marking a 125% increase since the start of the year.
This announcement follows Hims & Hers’ recent decision to provide a compounded formulation of semaglutide, the active component in well-known diabetes and weight loss medications Ozempic and Wegovy—both manufactured by Novo Nordisk. The telehealth service offers a monthly supply of the weight loss drug for $199, significantly less than the nearly $1,000 retail price for Ozempic and $1,349 for Wegovy.
The current shortage of these sought-after brand-name medications has led several telehealth platforms to exploit a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of drugs that are in limited supply.
Compounding involves customizing an FDA-approved drug by a licensed pharmacist or physician to suit an individual patient’s specific requirements. While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that merely replicate commercially available medications, the FDA does not classify drugs in shortage as commercially available.
In comments to Bloomberg, Schultz expressed confidence in a “long future” for Hims & Hers in the market for compounded semaglutide. When asked about the potential for pharmacies to continue producing compounded semaglutide after the shortage resolves, Schultz noted that there would still be cases requiring individualized prescriptions, alleviating his concerns.