WeightWatchers stock soars 70% after company agrees to buy obesity treatment platform

  • Shares of WW International jumped after the company said it has agreed to buy sequence, a telehealth platform that helps treat obesity.
  • WeightWatchers has struggled over the past year as it attempted to adapt its weight-loss messaging to the wellness culture.
  • The trend of using obesity drugs for weight loss has led to a shortage of people who use it to treat conditions such as diabetes.

Weight Watchers brand ice cream in a supermarket freezer in New York.

Richard Levin | Corbis News | Getty Images

Shares of WW International, also known as WeightWatchers, skyrocketed on Tuesday after the company said it plans to buy Sequence, a telehealth platform that provides treatment for obesity.

The stock was up more than 70% Tuesday afternoon. Its market value was more than $470 million.

“As a trusted leader in weight management, it is our responsibility to support those interested in finding out if medication is right for them,” WWE CEO Sima Sistani said in Monday’s announcement.

Tuesday’s jump comes after a year of underperforming stocks. The company’s shares were down 57% over the past year as it struggled to pivot to wellness and move away from weight loss.

Sistani took over as chief executive in late February, steering the company back toward the weight-loss message.

Sequel’s announcement comes as companies in the weight loss industry tout obesity drugs as a path for customers looking to lose weight.

The trend has led to a shortage of drugs like Ozempic, which are commonly prescribed for type 2 diabetes.

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