WeightWatchers Soars as Deal Taps Into Obesity-Drug Boom
- Stock jumped by the most since October 2015 on Tuesday
- WW’s stock has plunged about 93% from 2018’s record high
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WW International Inc., previously known as WeightWatchers, surged by the most in more than seven years after striking a $132 million deal for a telehealth provider, a move that helps the company tap into the burgeoning market for a new class of weight-loss drugs.
WW’s shares jumped by 79%, the most since October 2015, as the acquisition of Sequence, a platform that offers clinical access to prescription weight-management medications, helped investors look past slumping revenue. The stock, which at one point in 2018 traded north of $100 per share, had fallen to about $4 before Tuesday’s rally after years of stock declines amid lackluster subscriber trends.