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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

WeightWatchers (NASDAQ: WW) Announces Acquisition of Sequence in Shift to Obesity Drug Market

WW International, Inc. (NASDAQ: WW), or WeightWatchers, describes itself as a human-focused technology company that offers a “proven, science-based, clinically effective weight loss and weight management program,” according to the company. Shares of the health & weight loss technology company surged 79% during trading on Tuesday, March 7, 2023. Over the past three months, WeightWatchers has seen average daily volume of 1.51 million shares. However, volume of 79.88 million shares or dollar volume of around $553.57 million, exchanged hands during the day’s trading.

Shares of WeightWatchers jumped after the company announced it has entered into a definitive agreement to acquire Weekend Health, Inc., d/b/a Sequence, a subscription-based telehealth platform that connects patients with healthcare providers specializing in weight management. The telehealth platform makes it easy for patients to connect with a healthcare provider, receive on-going care and obtain any necessary medications.

Sequence launched in late 2021, but has quickly grown into a $25 million annual revenue run-rate company with roughly 24,000 members, as of February 2023. The telehealth platform operates on a highly streamlined basis, which allowed the startup to turn cash flow positive recently.

Under the terms of the transaction, WeightWatchers will acquire Sequence in a cash and equity deal worth $132 million, including cash. Excluding Sequence’s cash of $26 million, the effective net purchase value is $106 million. The transaction will be broken down into the following milestones:

  • $100 million due upon closing of the transaction, including $65 million in cash and $35 million in 8.065 million common shares of WW
  • On the first anniversary of the deal closing, $16 million in cash will be dispersed
  • The second anniversary of the closing will include an additional $16 million in cash

The transaction remains subject to customary closing conditions, but is estimated to finalize during the second quarter of 2023.

“As science advances rapidly, we know there is a significant opportunity to improve outcomes for those using medications. Clinical interventions require better education, access, care management, community and the integration of a complementary lifestyle program for best results. It is our responsibility, as the trusted leader in weight management, to support those interested in exploring if medications are right for them,” said Sima Sistani, CEO of WeightWatchers.

Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/

The post WeightWatchers (NASDAQ: WW) Announces Acquisition of Sequence in Shift to Obesity Drug Market appeared first on Spotlight Growth.

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