Hims & Hers, a telehealth platform targeting millennials, announced on Monday the addition of Kåre Schultz, a seasoned executive from Novo Nordisk, to its board of directors.
Schultz has had a lengthy career at the Danish pharmaceutical company, known for its diabetes and obesity medications, where he held various positions, including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a press release, Schultz expressed enthusiasm about Hims & Hers’ potential to transform the healthcare landscape. “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,” he stated.
Following the announcement, Hims & Hers’ stock saw a 3% increase during Monday morning trading, bringing its year-to-date gains to 125%.
This development comes just months after Hims & Hers began offering a compounded version of semaglutide, the key ingredient in the well-known diabetes and weight loss drugs Ozempic and Wegovy, which are produced by Novo Nordisk. Hims & Hers is providing a one-month supply of this weight loss medication for $199, significantly lower than Ozempic’s nearly $1,000 and Wegovy’s $1,349 list prices.
The limited availability of these high-demand brand-name drugs has prompted several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act that permits the sale of compounded versions of drugs that are in shortage. Compounding involves modifying an approved medication by a state-licensed pharmacist or physician to address the specific needs of an individual patient.
Generally, the Food, Drug, and Cosmetic Act prohibits the compounding of drugs that merely replicate commercially available medications. However, drugs in shortage are not regarded by the U.S. Food and Drug Administration (FDA) as commercially available.
In an interview with Bloomberg, Schultz remarked that the company sees a “long future” in the sale of compounded semaglutide. When asked about the future of compounded semaglutide after supply shortages are resolved, Schultz noted that he believes there will still be circumstances where patients require customized prescriptions.