Shares soar upon Weightwatchers news

Weightwatchers shares soared Tuesday after the company said it was getting into the prescription drug weight loss business with the acquisition of Sequence.

Sequence, a telehealth operator, said that its specialists can prescribe medications under brand names including Ozempic, Wegovy and Trulicity.

Shares of WW International jumped more than 31 percent Tuesday morning and closed up 79 percent to $6.98 a share.

Weightwatchers offers subscribers meal plans with the goal of losing excess weight. With the acquisition of Sequence, the company is tapping into a red-hot market for prescription drugs that address obesity.

Ozempic, also known as semaglutide, works by stimulating the body’s own insulin production and reducing appetite. While it is prescribed for diabetes, Ozempic can also help people lose weight.

WW International, based in New York, will pay $106 million for Sequence, which served about 24,000 members across the country as of February, with annual revenue of about $25 million. The acquisition is expected to close in the fiscal second quarter.