US EditionWellness companies eager to avoid WeightWatchers' fate embrace weight-loss drugs
- WeightWatchers declared bankruptcy on May 7, 2025, in New York after decades as a leading weight-loss company.
- The bankruptcy followed changing consumer preferences away from WeightWatchers’ old points-based system toward telehealth and weight-loss drugs.
- Meanwhile, wellness companies are struggling as federal regulators prevent the distribution of lower-cost compounded versions of GLP-1 drugs, which had previously driven strong profits for telehealth firms.
- Morningstar analyst Karen Andersen highlighted that offering lower-cost alternatives of these medications significantly contributed to company earnings, and emphasized that firms like Novo require collaborators who can effectively reach patients.
- The shift toward GLP-1 agonists, which can reduce weight by 15%-20%, signals wellness companies must adapt creatively or risk decline like WeightWatchers.
13 Articles
13 Articles
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Wellness companies eager to avoid WeightWatchers' fate embrace weight-loss drugs
WeightWatchers filed for bankruptcy on Tuesday as Americans shunned its offerings in favor of Novo and Lilly drugs and copies from pharmacies that can cut a person's weight by as much as 20%.
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