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An article described Weight Watchers pivoting in their business model by buying a telehealth business that can write prescriptions. That opens the door for prescribing weight loss drugs for their members.
Main point: “Wegovy and similar drugs threaten to forever change the $76 billion diet industry and the fabric on which it has stacked its riches.”
More about it:
- “Sima Sistani, the 44-year-old CEO of WeightWatchers, is aware of this, and she recognized WeightWatchers had to evolve – or else. She knows she can’t beat Wegovy. That’s why she’s joining forces with it.”
- “‘What we do best is help people with weight management. That is the anchor,’ she said. ‘I think we have to be true and authentic to that and who we are.'”
- “WeightWatchers made a $100 million-plus deal to buy Sequence, a telehealth business that offers virtual prescriptions to patients for these weight loss drugs where appropriate.”
- “These medications have shown, and science has evolved to say, that living with obesity is a chronic condition. It’s important, no matter what it means for our business, to just be clear about that. It’s not willpower alone”
Why it matters:
- “Goldman Sachs analysts say that buying Sequence and embracing semaglutides is keeping the company from collapse.”
- “They believe that these changes could generate $455 million in new revenue for WeightWatchers by 2025.”
What’s ahead: “While the future of WeightWatchers is still being written, Sistani is certain of what it won’t be: It won’t be centered around weekly meetings and weigh-ins. It won’t be a consumer packaged-goods company selling diet snacks.”
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