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WeightWatchers‘ stock soared Tuesday after the company said it is getting into the prescription drug weight loss business with the acquisition of Sequence.
Sequence is a telehealth provider that offers users access to drugs used to treat diabetes and obesity under the brand names including Ozempic, Wegovy and Trulicity. The drugs all work by the same mechanism: They trigger the release of insulin, block sugar production in the liver and suppress appetite.
WeightWatchers offers subscribers meal plans with the goal of losing excess weight. With the acquisition of Sequence, it is tapping into a red-hot market for prescription drugs that address obesity, and broadening what it offers to customers.
Shares of WW International Inc. closed Tuesday up 79%.
“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 and Wegovy are different versions of the same drug, known as semaglutide. They’re both given as once-weekly injections. Ozempic is approved only to treat diabetes, although it has been increasingly prescribed for off-label use.
