WeightWatchers launches program for weight-loss drug users after Oprah confirms GLP-1 use

WW International (WW), formerly known as WeightWatchers, is jumping on the bandwagon of one of the biggest stories of the year — weight-loss drugs.

On Monday, the 60-year-old company announced the launch of the WeightWatchers GLP-1 Program, which offers behavioral support for those on weight-loss drugs such as Ozempic and Wegovy.

"This new GLP-1 Program is to help consumers who are on GLP-1 medications manage the unique behavioral needs they face while managing life on medications," a spokesperson told Yahoo Finance over email.

The program is intended to ensure consumers on GLP-1 drugs have "adequate nutrition — specifically protein and nutrient-dense foods, as well as hydration," the release stated. It includes daily nutritional and activity targets; a list of GLP-1 go-to foods and recipes; and trackers for weight, activity, and food, among other tools.

The announcement came a day after Oprah Winfrey, a WW International board member since 2015, revealed she is using weight-loss drugs. Winfrey, who has an $8.29 million stake in the company (based on Wednesday's close), did not specify which weight-loss medication she is on.

The media mogul told People magazine that she changed her lifestyle recently by eating her last meal at 4 p.m., drinking a gallon of water a day, and using the WeightWatchers principle of counting points while on the drug.

At first, she said, she had an "awareness of [weight-loss] medications" but felt like she had to "prove" that she "had the willpower" to lose weight.

"I now no longer feel that way," Winfrey continued. She said that she is "absolutely done with shaming from other people" and that "medically approved prescription for managing weight and staying healthier, in my lifetime ... feels like relief."

This program is the latest move by WW International to become a more digital and tech-focused weight-management company. Earlier this year, WeightWatchers acquired Sequence, a subscription telehealth platform that offers access to healthcare providers that specialize in "chronic weight management" and are able to prescribe weight-loss drugs to patients.

On Thursday, WW International also announced WeightWatchers Clinic, a $99 per month program targeted toward weight-loss drug users that the company said is the "complete product integration" of Sequence.

While many of these weight-loss drugs are intended to be paired with behavioral and lifestyle changes, WW also told Yahoo Finance that the GLP-1 program "is not to help patients wean off of medications." However, the program does offer features like its Points program — which Oprah uses — "that could help with that if it's decided between a patient and their clinician."

'Multibillion-dollar potential'

As weight-loss drugs continue to gain popularity, the WeightWatchers GLP-1 program may be yet another sign of their larger marketplace and impact.

Competition over the space has boosted shares of pharma companies, such as Ozempic maker Novo Nordisk (NVO), which Yahoo Finance named its 2023 Company of the Year.

Similarly, WW International stock popped nearly 10% at market open on Thursday following the announcement, and its shares are up more than 100% year to date. WeightWatchers is hoping its new GLP-1 programs will continue its turnaround story. Over the past five years, the stock remains down more than 83%.

Novo Nordisk "could be fairly credited with creating a weight-loss drug marketplace kind of out of thin air where there was none before — and one that now has multibillion-dollar potential," TD Cowen Securities analyst Michael Nedelcovych told Yahoo Finance's Anjalee Khemlani.

The drugs' popularity has also caused investors to frantically debate the prospects of consumers overhauling their entire lifestyles including their food choices. However, the initial panic surrounding food stocks is likely unwarranted, according to several sources Yahoo Finance talked to, including Novo Nordisk’s CEO Lars Fruergaard Jørgensen.

"There's no doubt that with the intervention we see now with the GLP-1 medicines, you see [there's a] significant shift in consumer behavior," Jørgensen told Yahoo Finance in an exclusive interview, adding: "Some of these categories will be impacted."

Jørgensen mentioned that medical technology companies and drink and snack businesses, among others, could see slower revenue growth due to rising GLP-1 use.

However, the impact will happen "over many years," as the drug becomes more widely available, per Jørgensen. Currently, a lack of insurance coverage and a supply shortage have limited the adoption of Ozempic and Wegovy.

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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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