Weight Watchers International (NASDAQ:WW) told investors it has completed its acquisition of Weekend Health, doing business as Sequence, a subscription telehealth platform offering access to doctors who can prescribe weight-loss drugs such as Ozempic and Wegovy.
Its shares surged more than 40% in early trade.
The US$132 million cash and stock acquisition allows WeightWatchers customers to access medical interventions along with food tracking and lifestyle alterations. Sequence seamlessly integrates the patient and clinician experience for medication management and related clinical care while providing high-touch support in navigating the insurance approval process, the company explained.
“WeightWatchers is at a pivotal point where we can build new capabilities that expand our market, reinforced by our foundational strengths,” WeightWatchers CEO Sima Sistani, said in a statement.
“Given the advancements in chronic weight management medications, entering into clinical interventions, for those who medically qualify, is a natural next step for WeightWatchers. Our goal is to provide sustainable, science-backed solutions to all weight health pathways, whether medications are part of an individual’s journey or not.”
Since its launch in late 2021, Sequence has grown into an approximately $25 million annual revenue run-rate business serving approximately 24,000 members across the US as of February 2023.
WeightWatchers’ shares were 43% up at $5.90 by 11am Eastern Time.
Contact the author at stephen.gunnion@proactiveinvestors.com