Investors may want to keep an eye on WW International – formerly Weight Watchers.
The stock is up 53% on a volume spike to 42.8 million shares. All after WW acquired telehealth provider, Sequence, which will also give it access to a growing market for obesity drugs. Better, Goldman Sachs just raised its price target on WW to $13.
“We believe a catalyst for a turnaround has emerged with its new obesity drug on-ramp solution,” said the firm, as quoted by Bloomberg. “With the now completed acquisition of Sequence, WW will begin to offer a pharmaceutical-based clinical subscription service that it can integrate with its legacy behavioral-based weight management offering.”
Along with telehealth consultations, insurance coordination, and nutrition and fitness plans, Sequence offers glucagon-like peptide-1 medications, including semaglutide, which use the brand names Wegovy, Ozempic, and Rybelsus.
After all, with the obesity epidemic still bursting at the seams, there’s plenty of opportunity for WW. In fact, according to Medical News Today, the issue contributes to more than five million global deaths every year. In addition, according to the World Health Organization, obesity has tripled since 1975. More than 1.9 billion adults were overweight, as of 2016, with more than 650 million considered obese.