WeightWatchers has a new $99 per month plan for people taking weight loss medications.
Call it WeightWatchers WW.
With Ozempic’s side.
The weight loss platform is set to launch the WeightWatchers GLP-1 program, a new plan for people who are obese or overweight and take increasingly popular injectable medications that help suppress hunger, such as Ozempic, Wegovy and Saxenda. These drugs are known as GLP-1 drugs because they resemble a gut hormone known as GLP-1, which can reduce appetite. The recently approved Zepbound belongs to a somewhat similar class, but also affects another gut hormone called GIP.
The new GLP-1 program will operate under the umbrella of what the company calls WeightWatchers Clinic. Clinic access costs $99 per month, but this does not include medications. According to a WeightWatchers spokesperson, participants can purchase medications through a clinic or pharmacy of their choice. The clinic will also sell appetite-reducing medications to people who do not participate in the program.
The announcement of the new program follows news that Oprah Winfrey, who serves on the board of WW International, the parent company of WeightWatchers, is taking weight loss pills herself as part of a broader effort to lose weight. She told Entertainment Tonight of her own strategy: “It’s not just one thing. “That’s it.”
The launch of the GLP-1 program comes several months after WeightWatchers acquired Sequence, a GLP-1 drug prescriber, for $106 million. A WeightWatchers spokesperson said WeightWatchers Clinic natively integrates Sequence into its platform.
The $99 per month cost to access the WeightWatchers Clinic and participate in the GLP-1 program is significantly more expensive than the standard WeightWatchers membership, which costs $23 per month. WeightWatchers said its GLP-1 program focuses on addressing the specific needs of people receiving medication, including proper nutrition and hydration. It will also offer support and tips through what the company calls a “community of people on a similar journey.”
“What we’ve seen is that people taking GLP-1 medications need help with different behavioral problems compared to people not taking these medications,” Gary Foster, WeightWatchers’ chief scientific officer, said in a statement. .
WeightWatchers has reportedly faced issues with membership decline as GLP-1 drugs have grown in popularity, likely because people looking to lose weight may see less need for the platform due to the drug’s effects. The Wall Street Journal reported in April that the company’s subscriber base had fallen to 3.5 million from 5 million a few years earlier.
WeightWatchers’ stock price has also fallen in recent years. It fell from a high of $100 five years ago to a closing price of $7.37 on December 13th.
Last November, the company reported third-quarter net income of $43.7 million, or 54 cents per share, after losing $206 million, or $2.93 per share, in the year-ago period. Sales fell 14% to $214.9 million. Analysts surveyed by FactSet expected WW to report earnings of 13 cents per share on revenue of $222 million. The company said full-year revenue is expected to be at the low end of guidance.
When WeightWatchers acquired Sequence, Goldman Sachs GS,
Analyst Jason English said it could help companies target abandoned users.
English writes that there is a group of consumers who “have historically been overweight or obese and have shown a willingness to pay for help.”
