Weight Watchers CEO on diabetes drugs for weight loss: 'There's been a lot of misinformation and misuse'

WW International (WW), better known as Weight Watchers, made its fifth-ever acquisition in the company's 60-year history this week with telehealth and medical prescription startup Sequence.

The move opens the door for the legacy weight loss program to enter a new, hot space in which chronic disease drugs are being used for weight loss.

The popularity of drugs like Novo Nordisk's (NVO) Ozempic and Wegovy, and soon Eli Lilly's (LLY) Mounjaro, could help boost the company's membership as it looks to offer these medications — typically used for diabetes — which have been proven in clinical trials to help shed weight in addition to managing the disease.

WW CEO Sima Sistani told Yahoo Finance that this move is not a shift away from the legacy program's core beliefs in behavioral and diet changes with community support.

"The Weight Watchers you know and love is not going anywhere. It's an 'and,' not an 'or,'" Sistani said of the push into clinical services.

But, she acknowledged that in some cases, "Willpower alone is complex. Because of the genetic and biological, environmental, socioeconomic (factors)."

This photograph taken on February 23, 2023, in Paris, shows the anti-diabetic medication

The health industry has in recent years looked to root causes of obesity in certain populations, citing lack of access to fresh or healthy foods as one potential, and inability to afford such foods as another.

With the breakthrough of the new chronic management injectable drugs — and their popularity causing shortages that impact diabetic patients — Sistani sees an opportunity to leverage the company's brand to be a go-to source for the medication's users.

"This represents a paradigm shift in our industry and one that we felt that it was important to address with a full-stack solution. And nobody else out there can do what we can do. When you get a (prescription) for these medications, it is medically advised to do it alongside a lifestyle behavior change program. And as you know, we are the number one doctor-recommended behavior change program," Sistani said on a recent earnings call.

A sign for Weight Watchers is displayed at  office in lower Manhattan, New York October 19, 2015. Oprah Winfrey will buy a 10 percent stake in Weight Watchers International Inc, adding her celebrity and consumer appeal to a diet brand that has been shedding subscribers. REUTERS/Brendan McDermid
A sign for Weight Watchers is displayed at office in lower Manhattan, New York October 19, 2015. Oprah Winfrey will buy a 10 percent stake in Weight Watchers International Inc, adding her celebrity and consumer appeal to a diet brand that has been shedding subscribers. REUTERS/Brendan McDermid

She told Yahoo Finance that the company will be prescribing per FDA guidelines.

"These medications, they're not for everyone. I think that there's been a lot of misinformation and misuse, treating it like something where you're going to lose 10-20 pounds for your reunion. That's not the appropriate use for these medications," she said, hinting at the growing trend of celebrities admitting they use the drug.

"These aren't 'weight loss drugs,' these are chronic weight management prescriptions that can help you with the conditions of living with overweight and obesity," Sistani added.

She also noted the company is "in the subscription business not the prescription business."

Sistani emphasized that the company would only allow those with body mass indexes (BMI) over 30, or those over 27 years of age with a comorbidity (chronic disease), to be prescribed the drug, per FDA guidelines. With the growing prevalence of the drugs, more insurers are covering it, allowing more individuals access.

"Now that supply chain challenges are being resolved and more insurance plans are covering these medications, access is expected to increase. The FDA indicates that chronic weight management medication should only be prescribed as an adjunct to behavioral lifestyle changes. However, there has been a lack of holistic care to partner with these medications. They are not magic pills," Sistani said on the call.

But it isn't going to be a quick turnaround. Sistani noted on the call that it will take time to build out the vertical, and there will be a learning curve as to how to integrate the medicine with members' weight loss journeys.

And the company is doing so at a time when there are new tech-based weight-loss startups, and more do-it-yourself resources than ever before — which has lead to a decrease in subscribers in recent years.

But Sistani said the company's scale is its biggest advantage. WW International already has relationships with companies, insurers, and has clients like the City of New York and Cleveland Clinic as business partners. That's something startups are still working on building, Sistani said.

"This is truly the OG social network, this is how people connect around a vulnerable experience," she told Yahoo Finance.

"We're first of all managing to the long term health of the company, not the stock price," Sistani added.

She maintains the company is not pivoting but rather building its service offerings around new science and technology.

That includes providing the platform to ensure that whoever does need access to the drug can do so with the help of WW managing the engagement with insurers. But ultimately the cost of the prescriptions — which has been reported to be more than $1,000 a month in some cases — would fall on the patient, depending on whether their insurers are covering it or not.

Follow Anjalee on Twitter @AnjKhem

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance