Why WeightWatchers could soon start prescribing weight loss drug Ozempic – National | 24CA News
WeightWatchers soared Tuesday after the corporate mentioned it was stepping into the prescription drug weight reduction business with the acquisition of Sequence.
Sequence, a telehealth operator, says that its specialists can prescribe medicines underneath model names together with Ozempic, Wegovy and Trulicity.
Shares of WW International Inc. jumped almost 29 per cent on the opening bell.
WeightWatchers provides subscribers meal plans with the objective of dropping extra weight. With the acquisition of Sequence, the corporate is tapping right into a red-hot marketplace for prescribed drugs that addresses weight problems, and broadening what it provides to clients.
“It is our responsibility, as the trusted leader in weight management, to support those interested in exploring if medications are right for them,” mentioned CEO Sima Sistani mentioned in a ready assertion late Monday.
Ozempic, often known as semaglutide, works by stimulating the physique’s personal insulin manufacturing and lowering urge for food. While it’s prescribed for diabetes, Ozempic may also assist individuals shed weight.
If it’s not handled, weight problems can result in lifelong well being issues, together with hypertension, diabetes and melancholy.
“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,”
Lasser mentioned that WW’s business has been disrupted over the past a number of years and is now making an attempt to take huge steps to course right. “We think it will take time to see if this action really produces a change in the company’s fortunes,” he mentioned.
WW International, Based in New York City, pays $106 million for Sequence, which served about 24,000 members throughout the U.S. as of February, with annual income of about $25 million.
The acquisition is predicted to shut within the fiscal second quarter.
© 2023 The Canadian Press
