Hims & Hers Health Inc. is adding longtime Novo Nordisk A/S executive Kåre Schultz to its board of directors after its move into the booming market for weight-loss drugs.
Schultz, who spent over 25 years at Novo, said in an interview that Hims has a “long future” in selling so-called compounded versions of blockbuster weight-loss drugs like Wegovy and Zepbound.
Shortages of brand-name drugs made by Novo and Eli Lilly & Co. has allowed pharmacies to make what are essentially copies — and telehealth companies like Hims are selling them to patients at a steep discount. In May, when Hims said it was going to start offering a copycat version of Wegovy, its market capitalization added nearly $900 million in a single day of trading.
“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,” said Schultz, who’s also former chief executive officer of generic-drug maker Teva Pharmaceutical Industries Ltd.
Hims shares rose as much as 4.7% at the New York market open on Monday.
Compounded medications are not approved by the US Food and Drug Administration and don’t receive the same oversight as brand-name or generic drugs. Amid concerns over their safety and quality, Schultz, said he is “totally convinced patients can trust” Hims’ medications. “This is a highly ethical company,” he said.
However, the question remains whether pharmacies will be able to continue making compounded medications once shortages of the brand-name drugs end. Schultz said he’s not worried about this because there will continue to be situations where people need “individualized” prescriptions for medications, he said.
On Friday, Hims said that it was voluntarily cooperating with an inquiry from the US Federal Trade Commission, but declined to provide details on what it was about.
(Updates with opening share price in fifth paragraph.)
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