LifeMD Inc (NASDAQ:LFMD) stock was higher in Wednesday’s early trade, up 11% to $8.99, as the health company announced an agreement with Medifast Inc (NYSE:MED), which sees the new partners working to develop a clinically supported weight management program, featuring GLP-1 medications.
GLP-1 (glucagon-like peptide 1) based drugs – which include Novo Nordisk (NYSE:NVO)’s Ozempic - have quickly been adopted as something of a blockbuster for obesity and weight-loss treatments, among an emerging list of other ailments.
LifeMD, a specialist in virtual and remote primary services, and Medifast, the developer of the Optavia diet system and app, will now collaborate to deliver a “comprehensive, accessible, and coordinated approach to combating the escalating obesity public health crisis.”
It is a market opportunity estimated to reach some $100 billion by 2030, according to a stat highlighted in today’s respective statements from LifeMD and Medifast.
A Medifast survey, meanwhile, found that "over 40% of consumers with a BMI greater than 27 are interested in prescription weight-loss medication", and, demand is even higher among people "needing to lose more than 35 pounds".
Medifast is investing $20 million into LifeMD as part of the partnership – with $10 million provided as "funding enhancement" and the other $10 million is being used to purchase LifeMD stock.
“Combining lifestyle programs and individualized support with top-tier medical care and prescription therapeutics, like GLP-1 medications, is crucial for improving and sustaining metabolic health outcomes," LifeMD chief executive Justin Schreiber said in a statement.
“Medifast's proven coaching model and its established OPTAVIA brand is tightly aligned with LifeMD's innovative virtual care platform and network of affiliated clinicians.
“This synergy is not just complementary; it significantly amplifies LifeMD’s impact in the weight loss sector."
Schreiber added: “With Medifast’s extensive client base and our advanced virtual care services, we believe that together we are exceptionally positioned to redefine the weight management industry.”
Medifast chief executive Dan Chard, meanwhile, said: “Millions of people are seeking a solution that I believe we are uniquely positioned to provide.
“Together, Medifast and LifeMD expect to offer a comprehensive health offering starting with weight management, built around a powerful model of support that includes an independent OPTAVIA Coach and a board-certified affiliated clinician.”