Crash diet
New drugs like Ozempic have cut into Medifast's customer base, with the firm losing tens of thousands of coaches and millions of dollars in revenue.
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Miami Herald
a day ago
- Miami Herald
WeightWatchers takes drastic step to exit bankruptcy
Growing up, I always knew when it was "weigh-in day." My mom would slip into the kitchen in the early morning and emerge with her little tracker notebook tucked under one arm and a low-point snack in the other. I was fascinated. She had little bars in shiny wrappers, chocolate-covered pretzels that somehow counted as healthy, and a whole drawer of food labeled with blue and purple stickers. I remember trying some of her WeightWatchers snacks and being surprised by how much I liked them. Related: How psychedelic mushrooms are helping people unlock their potential WeightWatchers was more than just a diet brand back then. It was a community. An identity. It was built on accountability and structure and a little bit of ritual. So it's strange, now, to see the brand struggling. For years, it's faced declining membership, shifting trends, and fierce competition from newer, tech-driven health platforms. And while the company has tried to modernize by adding app integrations, personalized plans, and even embracing controversial GLP-1 medications-it hasn't been enough to avoid serious financial trouble. Now, the brand is making its biggest move yet. On June 17, WeightWatchers announced a major milestone: the court just greenlit its Plan of Reorganization. That means the company is finally on track to exit bankruptcy-potentially as soon as next week. Under the new plan, WeightWatchers is wiping out $1.15 billion in debt. That's more than 70% of what it owed, and it gives the brand a much-needed shot at stability. Here's what that looks like: lenders and noteholders are trading their claims for new loans and equity. Related: This new AI tool could change how you shop for makeup Existing shareholders? They're getting just 9% of the new company. A brutal haircut, but one that clears the path forward. CEO Tara Comonte called it a "meaningful turning point" and said the company is doubling down on what's next: focusing on lifestyle change, clinical care, and yes, GLP-1 medications like Ozempic and Wegovy. Through it all, the company stayed public. Now, with the paperwork nearly finalized, it's hoping to emerge with more speed, less baggage, and a clear runway to grow again. Let's be hasn't been the go-to name in weight loss for a while. Once the gold standard, it's been losing ground to flashier, tech-savvy rivals like Noom, MyFitnessPal, and a wave of telehealth startups pushing the latest miracle meds. But instead of fighting the shift, WW leaned in. It bought Sequence, a GLP-1 prescription platform, and started blending its old-school accountability model with medical support. Smart move, but an expensive one. Revenues fell, debt climbed, and the stock tanked. This bankruptcy reset? It might be the company's best shot at surviving the wellness wars. With over a billion in debt erased, the brand can finally focus on fixing what matters: modernizing the product, rebuilding trust, and reaching people in a crowded, noisy market. The trick will be walking the line between old and new. Between nostalgic snack bars and doctor-prescribed injections. But if WW gets it right, it won't just be a comeback. It'll be a transformation. And for the millions who once counted points and tracked progress, it might even feel like coming home. Related: Stanley cup maker sparks criticism over controversial partnership The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Yahoo
Can Ozempic, Wegovy Drive Further Growth for NVO in the Obesity Space?
Novo Nordisk NVO generates most of its revenues from the sales of its blockbuster GLP-1 injections, Ozempic for type II diabetes (T2D) and Wegovy for obesity. Ozempic and Wegovy include the same compound, semaglutide, a GLP-1 receptor agonist. While Ozempic was first approved in 2017, Wegovy was approved later in 2021. Both medications have witnessed rapid demand because of increased prescription rates, which have boosted their sales. Ozempic and Wegovy generated combined sales of DKK 50.1 billion in the first quarter of 2025, accounting for around 66% of the company's total revenues. Novo Nordisk is a global market leader in the diabetes GLP-1 segment, with around 54% value market share as of March-end. The company is also a global obesity market leader with a branded volume market share of 68.7% as of the end of the first quarter of 2025. In the second half of 2024, Novo Nordisk faced supply shortages of Ozempic and Wegovy, leading to their inclusion on the FDA's Drug Shortage list and slowing sales growth. After ramping up manufacturing, the FDA, earlier this year, declared the drugs are no longer in short supply, positioning them for a potential rebound in upcoming quarters. NVO has also struck deals with a pharmacy benefit manager and telehealth providers for marketing Wegovy in the United States, which are likely to give the company a commercial advantage over its competitors in the obesity market. Approvals for new indications can also drive sales of Ozempic and Wegovy higher. Ozempic's label has been expanded to include the treatment of cardiovascular risk reduction as well as for kidney failure in T2D patients. Wegovy's label, on the other hand, has been expanded to reduce the risks of major adverse cardiovascular events. Novo Nordisk is also looking to further expand Wegovy's indication for preventing heart failure in obesity patients. Additionally, a regulatory application seeking the approval of oral semaglutide 25 mg for obesity is currently under review by the FDA. The obesity market is heating up and is expected to expand to $100 billion by 2030, according to data from Goldman Sachs. Novo Nordisk's arch-rival in the obesity market is Eli Lilly LLY. NVO's Ozempic and Wegovy face strong competition from Lilly's tirzepatide medicines, Mounjaro (T2D) and Wegovy (obesity). Despite being on the market for less than three years, Lilly's Mounjaro and Zepbound have witnessed strong sales driven by rapid demand. Several companies like Amgen AMGN and Viking Therapeutics VKTX are also making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. Amgen has begun a broad phase III program on its dual GIPR/GLP-1 receptor agonist, MariTide, across obesity, obesity-related conditions and type II diabetes, with the first two phase III studies initiated in March. Viking Therapeutics' dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Phase III studies with the subcutaneous formulation of VK2735 are on track to begin this year. Year to date, Novo Nordisk shares have lost 13.6% against the industry's 2.5% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. The stock is currently trading above its 50-day moving average, but below its 200-day moving average. Image Source: Zacks Investment Research Novo Nordisk is trading at a premium to the industry, as seen in the chart below. Going by the price/earnings ratio, the company's shares currently trade at 17.67 forward earnings, which is higher than 15.63 for the industry. However, the stock is trading much below its five-year mean of 29.26. Image Source: Zacks Investment Research Earnings estimates for 2025 have improved from $3.80 to $3.84 per share over the past 60 days. During the same time frame, Novo Nordisk's 2026 earnings per share estimates have improved from $4.60 to $4.64. Image Source: Zacks Investment Research The stock's return on equity on a trailing 12-month basis is 80.95%, which is higher than 33.56% for the large drugmaker industry, as seen in the chart below. Image Source: Zacks Investment Research Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Viking Therapeutics, Inc. (VKTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
2 days ago
- The Hill
FDA's removal of Ozempic, Wegovy from drug shortage list upheld
A federal judge on Wednesday ruled that the Food and Drug Administration's (FDA) decision to remove popular GLP-1s from its drug shortage list, ending the sale of compounded versions of the drugs, was lawful and that the agency acted correctly. U.S. District Court Judge Mark Pittman found that the Outsourcing Facilities Association (OFA), an organization which represents compounding pharmacies, was wrong in its argument that the FDA's decision to remove GLP-1 drugs was 'arbitrary and capricious.' Earlier this year, the FDA officially moved semaglutide, including popular versions like Ozempic and Wegovy, off of its drug shortage list, signaling the end of the condition which permitted compounding pharmacies to sell compounded versions of the drug. The OFA had filed its lawsuit months before this, arguing the move to take GLP-1s off the shortage list was 'abruptly depriving patients of much needed treatment and artificially raising drug prices.' Their suit had initially been prompted by the removal of tirzepatide, marketed as Mounjaro and Zepbound, from the shortage list. The OFA had argued that Novo Nordisk, which manufacturers semaglutide, even acknowledged that compounded drugs satisfied 20 percent of the market, but Pittman noted that it seems they misread the record they were citing multiple times. 'In cases where such mistakes can be attributed to either an accidental misread or an intentional mischaracterization, the Court prefers to attribute them to accident rather than malice,' wrote Pittman. 'However, Plaintiffs' consistent and pervasive pattern of similar mistakes, in this case and OFA I, has made it increasingly difficult for the Court to assume they are the product of accident. Pittman took issue with some of the evidence presented by the plaintiffs, pointing to a 10-page chart that the plaintiffs created. It was not in the administrative record when the FDA considered its decision and thus it was not 'arbitrary' for the agency to not take the chart into consideration, the judge found. The plaintiffs also pointed to a report by the telehealth company Hims & Hers, which sold compounded GLP-1s when the branded versions were in shortage, that relied on a survey involving tirzepatide and semaglutide products. Pittman noted there was no way to verify how many people took part in the survey or what it defined as an 'inability to access.' Because the OFA didn't provide any new information, the court maintained it was not unreasonable for the FDA to give this survey 'less weight.' The Hill has reached out to the OFA for comment. The case was dismissed with prejudice, meaning this was a final judgment from Pittman. The OFA filed a notice of appeal on Wednesday in the U.S. District Court of Appeals for the Fifth Circuit.
