Founded over six decades ago, WeightWatchers (WW) was originally known as a subscription-based weight loss program consisting of easy-to-follow meal plans that were aimed at helping clients live healthier lives by losing excess weight.
However, the latest hack for celebrities and the wealthy to stay slim hasn't remained a secret for too long, as more public figures have begun confessing their use of GLP-1 medications.
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GLP-1 medications, which include Ozempic (NONOF) , Wegovy, and Trulicity, are prescribed semaglutide injectables typically administered to patients with type 2 diabetes and, most recently, to treat obesity.
These drugs are meant to block sugar production in the liver, eventually suppressing appetite and promoting weight loss.
The craze for these weight loss injections began to take over WeightWatchers' clientele just as fast as they made people shed multiple pounds.
But, as the saying goes, if you can't beat them, join them, and WeightWatchers took the first opportunity to hop on.
WeightWatchers enters the weight loss drugs game
In March 2023, the company that once praised the power of dieting and calorie counting to promote weight loss decided to enter the prescription drug business, specifically GLP-1 drugs.
Although it completely contradicted what WeightWatchers (WW) had promoted for decades, the company closed a $106 million deal to acquire Sequence.
Sequence, now known as WeightWatchers Clinic, is a comprehensive prescription weight-loss program that grants WeightWatchers' clients access to GLP-1 medications to aid them in sustaining weight loss.
This acquisition was completed not only because the company wanted to keep up with the new weight loss trend but also because it has been struggling to make ends meet for a while.
As of Monday, WeightWatchers' stock has dropped over 90% YTD.
According to WeightWatchers' Q2 2024 earnings report, subscription revenues declined by around 6%, with total revenues dropping nearly 11% compared to the year prior.
End-of-period subscribers fell by over 6% versus last year, but clinical subscribers, who are those subscribed to WeightWatchers Clinic to receive GLP-1 medications, increased by nearly 120%.
Although most sectors had declining results, GLP-1 prescription drugs continue to prevail in the weight loss market.
WeightWatchers executive quits abruptly, and the company doesn't give a reason
On Friday, WeightWatchers announced that Sima Sistani would immediately leave her role as CEO after a two-year run.
Sistani served as CEO during the company's transition into the weight loss medication business and actively supported the change.
However, WeightWatchers has yet to publicly specify why the now-former CEO decided to resign and leave immediately.
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After the announcement was made, the company's stock decreased by nearly 3%.
Although a big setback for the company, WeightWatchers stock increased by 5.3% on Monday.
However, this is not the first time a board member has abruptly left WeighWatchers.
Oprah Winfrey leaves WeightWatchers after revealing a shocking secret
In February, WeightWatchers announced Oprah Winfrey, who had served on the board since 2015, would leave the company immediately.
Although Winfrey also had a sudden departure from the company, she couldn't leave without doing one last good deed to mark her legacy on a project she had spent so many years of her life promoting.
Winfrey donated all 10% of her stake in the company to the National Museum of African American History and Culture in Washington.
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In December 2023, Winfrey revealed that she had been using weight loss medications and left the company because she didn't want any conflict of interest associated with her new journey.
While on "Jimmy Kimmel Live!", Winfrey also announced An Oprah Special: Shame, Blame and The Weight Loss Revolution, where she would sit down with medical experts and patients to discuss weight loss drugs.
She attributed her transition to realizing that weight loss was not about willpower but rather a mental state that she couldn't get out of.
"It occupied five decades of space in my brain, yo-yoing and feeling like why can’t I just conquer this thing, believing willpower was my failing," said Winfrey in an interview.
"Obesity is a disease. It’s not about willpower — it's about the brain."
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