WeightWatcher’s shares rise after Sequence deal
- WW International shares rose after the company said it agreed to buy Sequence, a telehealth platform that helps treat obesity.
- WeightWatchers has struggled over the past year as it tried to adapt its weight loss messages for wellness culture.
- The trend of using obesity drugs for weight loss has led to shortages for those who use it to treat conditions such as diabetes.
Weight Watchers brand ice cream in a supermarket freezer in New York.
Richard Levine | Corbis News | Getty Images
Shares in WW International, also known as WeightWatchers, soared on Tuesday after the company said it planned to buy Sequence, a telehealth platform that provides treatment for obesity.
The stock was up more than 70 percent on Tuesday afternoon. The market value was more than 470 million dollars.
“It is our responsibility, as the trusted leader in weight management, to support those interested in exploring whether medication is right for them,” WW CEO Sima Sistani said in an announcement Monday.
Tuesday’s jump follows a year of underperformance for the stock. Shares in the company fell 57% in the past year as it struggled to pivot to wellness and move away from weight loss.
Sistani took over as CEO in late February, steering the company back against reports of weight loss.
The Sequence announcement comes as companies across the weight loss industry look to offer obesity drugs as a path to customers looking to lose weight.
The trend has led to shortages of drugs such as Ozempic, which are often prescribed for type 2 diabetes.
