The Washington Post

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.

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