As blockbuster weight-loss medications reshape the wellness industry, traditional companies like WeightWatchers are struggling to keep up — and others are scrambling to avoid the same fate.
This week, WeightWatchers filed for bankruptcy, citing a rapid shift in public preferences toward GLP-1 agonist drugs such as Wegovy, Ozempic, Zepbound, and Mounjaro, which can help users shed 15–20% of their body weight. The company admitted its classic points-based system and in-person meetings have fallen out of favor amid changing cultural views on weight, the rise of telehealth, and the growing dominance of these powerful medications.
CEO Adam McBride of telehealth provider Eden criticized WeightWatchers for not adapting quickly enough: “They weren’t listening to their members.” Eden, along with Noom and Hims & Hers, has fully embraced weight-loss drug integration, offering prescriptions alongside coaching and lifestyle support — a model that’s now driving much of their revenue.
Telehealth Leaders Surge Ahead
- Noom now earns over half of its revenue from clinical subscriptions tied to these drugs, with CEO Geoff Cook noting increased user engagement since integrating the medications.
- Hims & Hers saw 20% of its 2023 revenue come from compounded GLP-1 drugs.
- Even WeightWatchers relied partly on revenues from these medications before its bankruptcy.
Supplement Retailers Join the Trend
Supplement giants are also pivoting quickly:
- The Vitamin Shoppe launched a telehealth platform called Whole Health Rx, pairing GLP-1 prescriptions with vitamins, fiber, and protein supplements to counter common side effects like muscle loss and appetite suppression. Sales in this category jumped 20% year-over-year.
- GNC has introduced in-store sections specifically for GLP-1 users.
Challenges Ahead
However, the booming sales of compounded (cheaper, copycat) versions of the drugs may be ending. With shortages of name-brand products like Wegovy and Zepbound resolved, the FDA is cracking down on unapproved compounded versions, cutting off a key revenue stream for many telehealth and wellness firms.
Morningstar analyst Karen Andersen said the path forward may include strategic partnerships with brand-name drugmakers like Novo Nordisk or Eli Lilly, although building those alliances will be difficult. “It will be a rocky path,” she warned.
Despite setbacks, WeightWatchers hasn’t given up. It claims its hybrid approach — pairing GLP-1 drug use with behavioral coaching — led to a 23% average weight loss in a 13-week internal study.
With forecasts predicting that the weight-loss drug market could reach $150 billion annually within a decade, companies are racing to integrate the next generation of weight management into their core business models.
