New York
Weight Watchers gets into shape:
Slimming brand WW International, formerly known as Weight Watchers, has bought Weekend Health, a subscription “telehealth” business that prescribes weight-loss drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro, for $106m net of cash, says Robert Cyran on Breakingviews. But “the hefty effects of obesity drugs on society and business are just getting started”.
In the six decades WW has been in business, obesity levels in the US have risen to include 40% of the population. And yet, until now, WW hasn’t been able to capitalise on expanding waistlines. Its shares have fallen by 90% in five years. Weekend Health also helps customers to navigate the healthcare insurance market, giving WW added exposure to this $4trn sector. The price WW is paying, of roughly four times expected annual revenues, “doesn’t look outrageous” for a business with positive cash flow. The deal is admittedly small, says Lex in the Financial Times. But the 48% jump in WW’s share price on Tuesday
