WeightWatchers' stock soars after adding compounded GLP-1 treatment to its offering
By Tomi Kilgore and Ciara Linnane
Company is seeking to make weight-loss meds more available and affordable for its members
Shares of WW International Inc., known as WeightWatchers, soared 18% Tuesday, after the weight-management company announced the addition of compounded GLP-1 obesity treatments to its offering.
The new offering starts at $129.
"With the addition of compounded semaglutide [GLP-1], we are expanding our offering to include a clinical weight management solution that is both accessible and affordable," said Interim Chief Executive Tara Comonte in prepared remarks.
The company acknowledged that there have been shortages of GLP-1 medications, such as Novo Nordisk's (NVO) (DK:NOVO.B) Wegovy and Ozempic, for more than two years, and said it is looking to make alternatives available.
"We know that compounded semaglutide can be an important option for those seeking weight loss support, given its greater availability and affordability," said WW Medical Director Jamil Alkhaddo.
Under Food and Drug Administration rules, drugs that are in short supply can be made by compounding pharmacies, creating medications that are identical to, or almost identical to, the drug in shortage. WW has teamed up with an FDA-registered 503B facility, one that must comply with Current Good Manufacturing Practice regulations, to make the compounded medication.
Each batch is tested for both sterility and potency before release, the company said. WW's members also have access to its other weight-loss programs and the company has found that customers who combine a weight-loss treatment with its behavioral points program lose 11% more weight than those taking the medication alone.
WW clinicians have the option to prescribe compounded semaglutide, if needed. Patients can pay using their insurance or out of pocket and will receive their medication within 1 to 3 business days.
Less than 40% of insurers cover GLP-1 medications for weight loss, leaving many people living with obesity unable to afford their medicine.
WW's stock has plunged 91% year to date through Monday, amid disappointing quarterly results and a restructuring plan, while the S&P 500 has rallied 19.4%.
-Tomi Kilgore -Ciara Linnane
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10-08-24 1038ET
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