Hims & Hers, a telehealth platform catering to millennials, announced the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors on Monday.
Schultz has a robust background, having dedicated over 25 years to 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 serving as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed his excitement 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, Hims & Hers saw a 3% increase in its stock price during Monday’s morning trading, with shares up 125% since the start of the year.
This development comes after Hims & Hers recently began offering a compounded version of semaglutide, the active ingredient in well-known diabetes and weight loss medications, Ozempic and Wegovy, both manufactured by Novo Nordisk. The company is selling a month’s supply of this weight loss drug for $199, significantly lower than Ozempic’s nearly $1,000 price and Wegovy’s $1,349.
The current scarcity of these high-demand brand-name drugs has led several telehealth platforms to utilize a provision in the Food, Drug, and Cosmetic Act, which permits the sale of compounded medications that are in short supply. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to cater to specific patient needs.
Generally, the Food, Drug, and Cosmetic Act restricts the compounding of drugs that are merely replicas of commercially available medications. However, medications deemed to be in shortage are not classified as commercially available by the U.S. Food and Drug Administration (FDA).
Schultz discussed the future of Hims & Hers in selling compounded semaglutide in an interview with Bloomberg, affirming his confidence that even after shortages resolve, the need for personalized prescriptions will sustain the demand for compounded versions.