Weight loss and weight management company WeightWatchers announced Monday that it will acquire subscription telehealth platform Sequence, allowing the company to move into the chronic weight management space.
The deal is anticipated to close during the second quarter of 2023, and WeightWatchers will pay the net purchase price of $106 million.
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New York City-based WeightWatchers is a wellness company that combines technology and community support to help people lose weight and improve their fitness for up to $43 a month. It incorporates behavioral health tactics, such as through its point tracking system, that encourage mindful eating. Sequence, meanwhile, allows patients to have virtual appointments with a clinician, gives access to a dietitian and fitness coaching and provides prescription medications, including Ozempic and Wegovy. The company’s services cost $90 a month.
Dr. Gary Foster, chief scientific officer at WeightWatchers, said the company is still trying to figure out how Sequence will fit into WeightWatchers’ business and that Sequence will continue working with its current members and take on new members. However, the acquisition will allow WeightWatchers to move into more clinical care and help those with chronic weight conditions, including obesity.
“We know weight loss isn’t one size fits all,” Foster said in an email. “Our current program is the gold standard for behavioral weight loss and is well-suited for many people who need help losing weight and keeping it off. However, a behavioral program paired with a clinical intervention is critical to help people on chronic weight management medications. The acquisition of Sequence will allow for a more seamless consumer experience that does not currently exist, integrating the medically advised behavioral components, alongside easier access for prescription weight loss medications, where deemed appropriate between patient and clinician.”
Rémi Cossart, CEO and co-founder of Sequence, echoed Foster’s comments.
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“Pairing behavior change with medically appropriate clinical solutions is more powerful and more sustainable than clinical alone,” Cossart said. “WeightWatchers is the most studied and trusted behavior change program, and their customer-centric approach to livable, sustainable, science-backed weight management is unparalleled.”
WeightWatchers, which has been around for about six decades, has about 3.8 million subscribers. Sequence launched in 2021 and has 24,000 members.
The news comes at a time when 41.9% of adults in the U.S. suffer from obesity and 10.5% of the U.S. population has diabetes. But drugs like Ozempic have increased in popularity partially due to celebrities using the drug for weight loss, leading to shortages.
Photo: puhimec, Getty Images
