By MICHELLE CHAPMAN (AP Business Writer)
WeightWatchers’ inventory soared Tuesday after the corporate mentioned it’s entering into the prescription drug weight reduction enterprise with the acquisition of Sequence.
Sequence is a telehealth supplier that gives customers entry to medication used to deal with diabetes and weight problems below the model names together with Ozempic, Wegovy and Trulicity. The medication all work by the identical mechanism: They set off the discharge of insulin, block sugar manufacturing within the liver and suppress urge for food.
WeightWatchers presents subscribers meal plans with the aim of dropping extra weight. With the acquisition of Sequence, it’s tapping right into a red-hot marketplace for pharmaceuticals that tackle weight problems, and broadening what it presents to clients.
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,” mentioned CEO Sima Sistani mentioned in a ready assertion late Monday.
Ozempic and Wegovy are completely different variations of the identical drug, often called semaglutide. They’re each given as once-weekly injections. Ozempic is accredited solely to deal with diabetes, though it has been more and more prescribed for off-label use. Wegovy was accredited in 2021 to deal with weight problems in adults, and late final 12 months to deal with the situation in adolescents 12 and older.
In a scientific trial, adults who used Wegovy misplaced about 15% of their preliminary physique weight, whereas teenagers misplaced barely extra. For finest outcomes, the medication must be mixed with weight-reduction plan and train, consultants say. Trulicity is a unique drug, dulaglutide, used to deal with diabetes in adults and youngsters ages 10 and older. It’s not accredited to deal with weight problems.
The off-label use of semaglutide, spurred by social media posts, led to a scarcity of the drug for many of final 12 months. Novo Nordisk mentioned provides are being replenished, however many diabetes sufferers nonetheless report hassle accessing the medication they want.
Both Ozempic and Wegovy may cause attainable negative effects, the corporate experiences. They embody attainable thyroid most cancers, pancreatitis, kidney and gallbladder issues. The most typical negative effects are nausea, vomiting, diarrhea, abdomen ache and constipation.
Obesity prevalence rose from 30.5% from the 1999-2000 interval to 41.9% for 2017 by way of March 2020, in line with the Centers for Disease Control and Prevention. The prevalence of extreme weight problems surged from 4.7% to 9.2% for a similar intervals.
The estimated annual medical price of weight problems within the U.S. was nearly $173 billion in 2019 {dollars}, in line with the CDC. Annual medical prices for adults who had weight problems had been $1,861 increased than medical prices for individuals with wholesome weight.
“This deal brings access to prescription drug solutions for weight loss to WW’s historical focus on behavior 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 enterprise has been disrupted during the last a number of years and is now attempting to take large 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, primarily based in New York, can pay $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 anticipated to shut within the fiscal second quarter.
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Associated Press Health Writer JoNel Aleccia contributed to this report.
Source: www.bostonherald.com”