Oprah Winfrey has announced that she is resigning from Weight Watchers’ board, months after disclosing that she was taking medication to lose weight.
Ms. Winfrey has served as Weight Watchers’ most prominent spokesperson since joining Weight Watchers’ board of directors in 2015, helping it navigate competition from other weight loss companies and leading the way on obesity and dieting. It has sparked a wide range of conversations.
Analysts say her endorsement of WeightWatchers (she said she lost 40 pounds using the company’s points system) persuaded many others to sign up.
Weight Watchers’ stock price plummeted following the announcement, with shares down 25% in early trading Thursday.
The company stated: special declaration On Wednesday, the company announced to the Securities and Exchange Commission that Winfrey had notified the chairman that she would not run for re-election in May, ending her nearly nine-year term as director.
“Her decision was not the result of any disagreement with the company on any matter regarding the company’s operations, policies or practices,” Weight Watchers said in the filing.
Winfrey, who has spent decades at the center of national conversations about weight and diet, revealed in December that she was taking weight-loss drugs.
“The fact that there is a medically approved prescription to manage weight and stay healthier feels like a relief, a relief, a gift while I’m still alive.” It’s not something that should be done to you,” she said. told People magazine.
in statement Winfrey said Thursday that the company will continue to advise Weight Watchers CEO Sima Sistani on “elevating the conversation about recognizing obesity as a chronic disease.” .
Representatives for Ms. Winfrey had no additional comment.
In a statement, the company said Winfrey will donate the value of her Weight Watchers holdings to the National Museum of African American History and Culture in Washington as part of her efforts to “eliminate any potential conflicts of interest related to taking weight loss drugs.” Then he said.
Weight Watchers spokeswoman Kelsey Merkel said Winfrey wanted to “honestly advocate” for weight loss methods that she believed were the most effective, without anyone questioning her profit motive. She owned about 1.13 million shares worth $6.34 million, according to a Jan. 1 filing with the Securities and Exchange Commission.
Winfrey did not reveal which weight-loss drugs she was taking. In 2021, researchers discovered that the diabetes drug semaglutide produced dramatic weight loss effects in obese patients. Since then, demand has skyrocketed for new drugs such as Ozempic, Wigovy, and Zepbound, which help people lose weight, including by suppressing appetite.
The advent of such drugs poses business challenges for diet plans like WeightWatchers. But the company has pivoted to a business model based on its ability to acquire limited supplies of coveted weight-loss drugs.
Last year, Weight Watchers obtained Sequence is a subscription telemedicine platform that provides access to healthcare providers who can prescribe weight loss drugs such as Ozempic. $106 million. (Users pay $99 a month (not including prescription costs).) The company is also discontinuing some of its in-person meeting services, a popular tool for weight loss plans, and says some customers are opting for their own support. He encouraged them to organize groups.
After its initial share price following the acquisition of Sequence, WeightWatchers stock has lost more than half its value this year.
Barclays analyst Stephanie Davis said the New York City-based company’s stock price has fallen due to “worsening concerns” about its growth outlook and liquidity.
“We’re still in the early stages of transitioning from an in-person diet model to a digital health company,” Davis said in an interview, adding, “There are a lot of risks involved in the transition.”
