1 week Ago By Yelena Mandenberg
WeightWatchers is reportedly on the brink of bankruptcy , gearing up to pass the reins to its creditors, according to the Wall Street Journal's sources. The company is grappling with financial strains and a market shaken by emerging weight-loss pharmaceuticals . Weight Watchers is continuing negotiations with its financiers and bondholders, indicates the Journal.
"A number of options are being considered, negotiations are ongoing with lenders and bondholders," an insider told to DailyMail.com. However, WeightWatchers is saddled with a hefty $1.
6 billion debt, and the health and wellness titan has found it challenging to stay buoyant. As new weight-loss medications such as Ozempic and Wegovy disrupt the scene, they've caused a seismic shift in WeightWatchers' traditional business framework that revolved around peddling low-calorie nourishment and dietary counsel to those carrying extra pounds. In the wake of this pharmaceutical revolution, many erstwhile patrons of WeightWatchers appear to be flocking towards these drug-based alternatives promising effortless weight reduction.
The surge in prescriptions for a particular group of medications known as GLP-1 agonists is striking, with monthly figures reaching at least 3 million in the U.S. during the year leading up to March, based on data from health tech firm IQVIA.
This class includes drugs like semaglutide, found in Ozempic and Wegovy, as well as tirzepatide in Mounjaro and Zepbound. Morgan Stanley's research team projects an astounding uptake, predicting that by 2035 around 24 million Americans, or 7% of the national population, will be using GLP-1 medications. Recognizing this trend, major diet companies are opting to weave these popular pharmaceuticals into their subscription offerings.
A pioneer in the weight management industry since 1963, WeightWatchers made a strategic move last year by purchasing telehealth service Sequence. This allows its members effortless access to prescriptions for weight loss drugs. Despite this pivot, WeightWatchers persists in promoting behavioral change as the core strategy for shedding pounds.
Yet, they've rolled out virtual clinics that personalize fitness and dietary regimens along with prescription assistance, especially targeting those intent on losing an average of 20% body fat. WeightWatchers’ CEO Sima Sistani earlier emphasized to analysts the evolving perspective of the weight loss industry: "The weight loss space will be led by the acknowledgement that weight loss is a matter of health care," Sistani said. "This is a paradigm shift because weight loss has been and, unfortunately, often still is viewed as a vanity issue.
" WeightWatchers, which has rebranded to WW International, traces its origins back to 1961 when Jean Nidetch, a homemaker from New York City, established the company. Having battled with her weight for years, Nidetch crafted a weight loss regimen inspired by her personal journey and the "Prudent Diet" formulated by Dr. Norman Jolliffe of the New York City Board of Health.
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