Shares of WW International, also often called WeightWatchers, skyrocketed Tuesday after the corporate said it planned to purchase Sequence, a telehealth platform that gives treatment for obesity.
The stock closed 79% higher on Tuesday. Its market value stood at greater than $488 million.
“It’s our responsibility, because the trusted leader in weight management, to support those fascinated with exploring if medications are right for them,” WW CEO Sima Sistani said in a Monday announcement.
Tuesday’s jump follows a 12 months of sagging performance for the stock. Shares of the corporate were down 57% over the past 12 months because it struggled to pivot to wellness and move away from weight reduction.
Sistani took over as chief executive at the tip of February, steering the corporate back toward weight reduction messaging.
The Sequence announcement comes as firms across the burden loss industry look to supply obesity medications as a pathway to customers seeking to shed kilos.
The trend has led to a shortage in medications like Ozempic, that are commonly prescribed for Type 2 diabetes.
