Shares of WeightWatchers‘ corporate parent, WW International, soared Tuesday after the wellness company finalized its acquisition of Sequence — a subscription telehealth platform that will help it tap into the weight-loss drug market.
With the acquisition complete, WeightWatchers’ is preparing to launch its new lifestyle program, powered by Sequence, which will offer access to medical weight management.
The New York-based company claims the platform is a “first-of-its-kind solution that incorporates prescription medications alongside WeightWatchers’ proven lifestyle program.”
Shares were up as much as 61% in intraday trading Tuesday.
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On its website, Sequence is described as a virtual clinic that offers access to health care providers specializing in chronic weight management.
Patients pay around $100 a month to access a “comprehensive” weight loss management program that includes a consultation with a board-certified clinician. These clinicians help patients develop a custom weight loss treatment plan and could even prescribe medications including Wegovy, Saxenda or Mounjaro, according to its website.
People can join the waitlist for the new program that will also utilize obesity-related drugs.
“Given the advancements in chronic weight management medications, entering into clinical interventions, for those who medically-qualify, is a natural next step for WeightWatchers,” CEO Sima Sistani said.
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This comes as demand continues to surge for highly sought-after drugs Wegovy and Ozempic, which are the same medication — semaglutide — they just have different dosages and FDA-approved intended uses.
A growing number of people have been leaning on the drugs to trim fat after celebrities and other notable figures publicly touted their effectiveness as a weight loss treatment. The drugs gained so much popularity that manufacturer Novo Nordisk could not keep up at one point, causing a temporary nationwide shortage.
However, studies have shown that patients who discontinue semaglutide, will regain two-thirds of the weight they lost within the subsequent year, according to North Carolina-based gastroenterologist and obesity medicine specialist Dr. Christopher McGowan.
In its latest earnings report, Novo Nordisk reported that obesity care sales grew by 101% in the fourth quarter.
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Ozempic was approved by federal health officials in 2017 and marketed for medical use in the treatment of Type 2 diabetes while Wegovy was approved four years later specifically for chronic weight management in adults who are obese or overweight and have at least one weight-related condition.