WW Up on Copycat Weight-Loss Drug Offering

 

• Shares of WW International, better known as WeightWatchers, soared Tuesday after it said it is offering copycat weight-loss drugs to its members.
• The compounded treatments will contain the same active ingredient as Novo Nordisk's weight-loss medicines.
• Shares of the company have slumped as the boom in weight-loss drugs has cut into demand for WeightWatchers' services.

Shares of WW International (WW), better known as WeightWatchers, jumped nearly 25% Tuesday when the dieting services company announced it is offering a copycat version of blockbuster weight-loss drugs.

WW said eligible members could now get compounded semaglutide, giving them "access to clinical weight management interventions that are underpinned by the comprehensive, science-backed, behavioral and lifestyle support that has helped millions of people reach and sustain their weight goals."1

WeightWatchers. "WeightWatchers Adds Compounded GLP-1, Expanding Accessibility and Affordability of Weight Loss Medications."

Semaglutide is the active ingredient in Novo Nordisk's (NVO) obesity treatment Wegovy, as well as its diabetes medicines Ozempic and Rybelsus, which have also been shown to help with weight loss.  

Weight-Loss Drugs in Short Supply

WW noted that drugs to reduce weight have been in short supply, and interim Chief Executive Officer (CEO) Tara Comonte explained that the company is "expanding our offering to include a clinical weight management solution that is both accessible and affordable."

Compounding is a method by which another drug is added to the original patented one. WW noted that it has selected a compounding company that adheres to the same manufacturing standards enforced by the Food and Drug Administration (FDA) for production of FDA-approved drugs.  

WW International shares have been sinking, plunging to an all-time low in September, as the success of Wegovy and others cut into demand for the company's services. Even with today's gains, the shares are down nearly 90% in 2024.

https://www.investopedia.com/weightwatchers-stock-soars-on-copycat-weight-loss-drug-offering-8724863