Hims & Hers, a telehealth platform aimed at millennials, announced on Monday the addition of Kåre Schultz, a veteran executive from Novo Nordisk, to its board of directors.
Schultz has over 25 years of experience at the Danish pharmaceutical company, recognized for its diabetes and obesity medications, and has held key roles including president and chief operating officer. He currently serves as the CEO of Teva Pharmaceutical.
In a statement, Schultz expressed his enthusiasm for Hims & Hers, stating, “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 part of this journey.”
Following the announcement, Hims & Hers stock increased by 3% in morning trading, with shares up 125% since the start of the year.
The announcement comes shortly after Hims & Hers began offering a compounded version of semaglutide, the active ingredient in popular diabetes and weight-loss medications Ozempic and Wegovy, both produced by Novo Nordisk. The company is selling a month’s supply of the compounded weight-loss medication for $199, significantly cheaper than Ozempic’s list price of nearly $1,000 and Wegovy’s $1,349.
The limited availability of these high-demand and costly brand-name drugs has led several telehealth platforms to utilize a provision of the Food, Drug, and Cosmetic Act, which permits the sale of compounded versions of medications that are in short supply. Compounding involves customizing an approved drug by a state-licensed pharmacist or physician to suit specific patient needs.
While the Food, Drug, and Cosmetic Act generally prohibits compounding drugs that replicate commercially available medications, the U.S. Food and Drug Administration (FDA) does not classify drugs that are in shortage as commercially available.
Schultz mentioned to Bloomberg that the company has a “long future” in providing compounded semaglutide, and when asked about the future of pharmacies making compounded semaglutide after shortages are resolved, he expressed confidence that individual patient needs would still require such customized prescriptions.