Skip to main content
Sister Publication Links
  • ESG: THE IMPLEMENTATION IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Digital Health
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Unwell in America
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Digital Health
March 07, 2023 04:10 PM

WeightWatchers buys telehealth provider Sequence

Associated Press
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    money on screen - telehealth reimbursement - Mari feat. 6.4.2022
    MH Illustration/Getty Images

    WeightWatchers' stock soared Tuesday after the company said it is getting into the prescription drug weight loss business with the acquisition of Sequence.

    Sequence is a telehealth provider that offers users access to drugs used to treat diabetes and obesity under the brand names including Ozempic, Wegovy and Trulicity. The drugs all work by the same mechanism: They trigger the release of insulin, block sugar production in the liver and suppress appetite.

    Related: New guidelines recommend drugs, surgery to treat obesity in children

    WeightWatchers offers subscribers meal plans with the goal of losing excess weight. With the acquisition of Sequence, it is tapping into a red-hot market for prescription drugs that address obesity, and broadening what it offers to customers.

    Shares of WW International Inc. surged almost 70% Tuesday.

    “It is our responsibility, as the trusted leader in weight management, to support those interested in exploring if medications are right for them,” said CEO Sima Sistani said in a prepared statement late Monday.

    Ozempic and Wegovy are different versions of the same drug, known as semaglutide. They’re both given as once-weekly injections. Ozempic is approved only to treat diabetes, although it has been increasingly prescribed for off-label use. Wegovy was approved in 2021 to treat obesity in adults, and late last year to treat the condition in adolescents 12 and older.

    In a clinical trial, adults who used Wegovy lost about 15% of their initial body weight, while teens lost slightly more. For best results, the drugs should be combined with diet and exercise, experts say. Trulicity is a different drug, dulaglutide, used to treat diabetes in adults and children ages 10 and older. It’s not approved to treat obesity.

    The off-label use of semaglutide, spurred by social media posts, led to a shortage of the drug for most of last year. Novo Nordisk said supplies are being replenished, but many diabetes patients still report trouble accessing the drugs they need.

    Both Ozempic and Wegovy can cause possible side effects, the company reports. They include possible thyroid cancer, pancreatitis, kidney and gallbladder problems. The most common side effects are nausea, vomiting, diarrhea, stomach pain and constipation.

    Not a Modern Healthcare subscriber? Sign up today.

    Obesity prevalence rose from 30.5% from the 1999-2000 period to 41.9% for 2017 through March 2020, according to the Centers for Disease Control and Prevention. The prevalence of severe obesity surged from 4.7% to 9.2% for the same periods.

    The estimated annual medical cost of obesity in the U.S. was almost $173 billion in 2019 dollars, according to the CDC. Annual medical costs for adults who had obesity were $1,861 higher than medical costs for people with healthy weight.

    "This deal brings access to prescription drug solutions for weight loss to WW’s historical focus on behavior modification model," wrote UBS analyst Michael Lasser. "This is a significant change in the business. While the deal could bring considerable upside, it also carries sizable risks."

    Lasser said that WW's business has been disrupted over the last several years and is now trying to take big steps to course correct.

    “We think it will take time to see if this action really produces a change in the company's fortunes,” he said.

    WW International, based in New York, will pay $106 million for Sequence, which served about 24,000 members across the U.S. as of February, with annual revenue of about $25 million.

    The acquisition is expected to close in the fiscal second quarter.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    amazon-healthcare.png
    At ViVE, Amazon details latest virtual health, cloud computing ambitions
    data-hospital_i_i.png
    Unpacking ChatGPT’s early uses in healthcare
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing