WW International (WW), better known as Weight Watchers, made its fifth acquisition in its 60-year history this week. Telemedicine and Prescription Startup Sequence.
The move opens the door for traditional weight loss programs to enter the new hot space where chronic disease drugs are used for weight loss.
The popularity of drugs like Novo Nordisk’s (NVO)’s Ozempic and Wegovy, and soon Eli Lilly’s (LLY)’s Mounjaro, is looking to provide these drugs that have been proven to be used in diabetes in clinical trials. It may boost membership in the company. In addition to managing disease, it can help you lose weight.
WW CEO Sima Sistani told Yahoo Finance that the move is not a shift away from the core belief of traditional programs for community-supported behavior and diet change.
“The Weight Watchers you know and love aren’t going anywhere. It’s an ‘and’ not an ‘or,'” Sistani said of the push to clinical services.
But in some cases, “willpower alone is complicated because of genetic and biological, environmental and socioeconomic[factors],” she admitted.
In recent years, the health industry has focused on: Underlying causes of obesity in specific populationscites lack of access to fresh and healthy foods as a potential possibility, and the inability to afford such foods as another possibility.
With the surge of new chronic control injectables and their popularity causing shortages affecting people with diabetes, Sistani sees an opportunity to leverage its brand to become a go-to source for drug users. thinking about.
“This represents a paradigm shift in our industry, and one that we felt was important to address with a full-stack solution. It is medically recommended to do it in parallel with a lifestyle behavior change program when you get a (prescription) for. And as you know, we are the #1 physician recommended behavior change program.
She told Yahoo Finance that the company plans to formulate according to FDA guidelines.
“These meds aren’t for everyone. I think there’s a lot of misinformation and misuse and you’re treating it like something you’re going to lose 10-20 pounds for a reunion. It’s the proper use of these meds.” not,” she said, Alluded to a growing trend of celebrities admitting to drug use.
“These aren’t ‘weight loss pills.’ These are chronic weight management prescriptions that help reverse overweight and obese conditions,” Sistani added.
She also said the company “is in the subscription business, not the prescription business.”
According to FDA guidelines, Sistani said the company should only allow the drug to be prescribed to people with a body mass index (BMI) greater than 30 or people over the age of 27 who have comorbidities (chronic conditions). emphasized. And as the drug has become more prevalent, more insurance companies are covering it, making it more accessible to more individuals.
“Access is expected to increase now that supply chain challenges have been resolved and more insurance plans cover these drugs. Lack of holistic care to partner with these drugs. They are not magic pills.
But it won’t get better anytime soon. Sistani said in a call that building a vertical takes time and there is a learning curve on how to integrate medications into members’ weight loss journeys.
And the company does so at a time when new technology-based weight loss startups are emerging. Other homebrew resources More than ever — leading to a decline in subscriber numbers in recent years.
But Sistani said the company’s size is its biggest advantage. WW International already has relationships with businesses and insurance companies and has clients in New York City and his clinics in Cleveland as his business partners. This is something the startup is still working on building, Sistani said.
“This is a true OG social network, a way for people to connect around vulnerable experiences,” she told Yahoo Finance.
“We first manage the long-term health of the company, not the stock price,” Sistani added.
She argues that the company isn’t turning around, but rather building its offerings around new science and technology.
This includes providing a platform for anyone who needs access to medicines to have access, with the help of WW, which manages their engagement with insurance companies. Ultimately, however, the cost of prescriptions (reported to exceed $1,000 per month in some cases) becomes a burden to patients, depending on whether their insurance company covers it. increase.
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