WeightWatchers, opens new tab said on Tuesday it would offer a compounded version of Novo Nordisk's, opens new tab popular obesity drug Wegovy as part of its weight-management programs, sending its shares nearly 47% higher to an over two-month closing high.
Soaring demand for weight-loss drugs such as Wegovy and Eli Lilly's, opens new tab Zepbound, shown to help patients lose as much as 20% of weight on average, has led to shortages that allowed drug compounders to produce them under US regulations.
Multiple telehealth companies, including Noom and Hims & Hers Health, opens new tab, offer compounded versions of semaglutide, the chemical name of Novo's Wegovy, and its diabetes drug Ozempic, as patients look for alternatives amid the shortages.
Drug compounding refers to the practice of combining, mixing or altering drug ingredients to create a medicine tailored for an individual patient's need, according to the US Food and Drug Administration.
WeightWatchers, also known as WW International, said the new offering would start at $129.
"Given the ongoing shortages of branded medications such as Ozempic and Wegovy, WeightWatchers is committed to ensuring our members still have access to effective alternatives," CEO Tara Comonte said in a statement.
The stock has gone from trading above $100 in 2018 to below $1 in August 2024 and has lost more than 85% of its value this year, struck by revenue declines, liquidity concerns and Oprah Winfrey's decision to exit its board.
Outsourcing Facilities Association, a drug compounding industry group, sued the FDA on Monday over its decision to take Eli Lilly's blockbuster weight-loss and diabetes drugs off its list of medicines in short supply last week.
Novo's Wegovy and Ozempic are still on the FDA's shortage list. The compounding group claimed the FDA removed Lilly's tirzepatide, the key ingredient in its drugs Mounjaro and Zepbound, from the list even though it remains in short supply.
Lilly said in August it had begun selling vials of its Zepbound at $399 for a month's supply through its direct-to-consumer website.
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