Why WeightWatchers could soon start prescribing weight loss drug Ozempic
Global News
WeightWatchers is tapping into a red-hot market for prescription drugs that addresses obesity, and broadening what it offers to customers.
WeightWatchers soared Tuesday after the company said it was getting into the prescription drug weight loss business with the acquisition of Sequence.
Sequence, a telehealth operator, says that its specialists can prescribe medications under brand names including Ozempic, Wegovy and Trulicity.
Shares of WW International Inc. jumped nearly 29 per cent at the opening bell.
WeightWatchers offers subscribers meal plans with the goal of losing excess weight. With the acquisition of Sequence, the company is tapping into a red-hot market for prescription drugs that addresses obesity, and broadening what it offers to customers.
“It is our responsibility, as the trusted leader in weight management, to support those interested in exploring if medications are right for them,” said CEO Sima Sistani said in a prepared statement late Monday.
Ozempic, also known as semaglutide, works by stimulating the body’s own insulin production and reducing appetite. While it is prescribed for diabetes, Ozempic can also help people lose weight.
If it’s not treated, obesity can lead to lifelong health problems, including high blood pressure, diabetes and depression.
“This deal brings access to prescription drug solutions for weight loss to WW’s historical focus on behaviour modification model,” wrote UBS analyst Michael Lasser. “This is a significant change in the business. While the deal could bring considerable upside, it also carries sizable risks,”