Shares of Weight Watchers parent company WW International (WW) rose nearly 40% after the company announced plans to begin selling obesity medications.
Management at Weight Watchers said they will sell pharmaceutical company Novo Nordisk’s (NVO) popular weight loss drug Wegovy through their website.
News of the weight loss drug sales led the stock of WW International to close up 38% at $1.60 U.S. per share. The big move higher represents a huge reversal for WW stock.
The company’s share price had fallen more than 85% this year and into penny stock territory on concerns that weight loss medications will put Weight Watchers out of business.
In 2023, Weight Watchers’ long-time rival Jenny Craig filed for bankruptcy, citing the impact of weight loss drugs.
The stock of WW International had traded above $100 U.S. in 2018. This past summer, the shares were trading for less than $1 U.S.
Weight Watchers’ program has traditionally focused on healthy eating and portion control. The company said that the Wegovy weight loss medication will now be included in its weight-management programs.
Novo Nordisk’s Wegovy and Eli Lilly’s (LLY) Zepbound weight loss drugs that are used to treat obesity have proven to be extremely popular with consumers, resulting in supply shortages.