WeightWatchers Stock Rallies After Adding Compounded Semaglutide To Offerings Amid GLP-1 Shortages: Retail Stays Cautious

Shares of WW International Inc. (WeightWatchers) surged over 17% on Tuesday following the company’s announcement of compounded semaglutide as part of its weight management offerings.

This move comes in response to ongoing shortages of GLP-1 medications, which have left many patients struggling to find necessary treatments at pharmacies.

WeightWatchers reported that it has conducted nearly 3 million stock checks for GLP-1 medications, only finding them available 4.5% of the time.

"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 and the support they need to achieve the health outcomes they deserve," the company said.

The new compounded semaglutide offering starts at $129, in contrast to Novo Nordisk’s U.S. list prices of $935.77 for Ozempic and $1,349.02 for Wegovy, though many consumers pay less due to insurance coverage.

Interim CEO Tara Comonte stated, “With the addition of compounded semaglutide [GLP-1], we are expanding our offering to include a clinical weight management solution that is both accessible and affordable.”

Despite the positive market response, retail sentiment on Stocktwits remained ‘neutral’, albeit with a higher score, with message volume reaching ‘extremely high’ levels (87/100). 

Following the news, Barclays said it believes the new offering could extend WeightWatchers’ cash runway in the near term due to strong demand for compounded GLP-1s but sees potential risks, including regulatory challenges and friction in the employer channel. Barclays reiterated its ‘Underweight’ rating and $0.75 price target, doubting the sustainability of compounding as a long-term business model.

Craig-Hallum analyst Alex Fuhrman sees promise in the compounded semaglutide launch, noting that it positions WW to compete effectively in the upcoming post-New Year’s diet season. However, Fuhrman maintained a ‘Hold’ rating, citing overly optimistic consensus estimates for next year.

The company has faced significant challenges this year, with its stock price consistently closing below $1 since late August, following disappointing quarterly results and a lowered full-year outlook.

WeightWatchers has also experienced a leadership change, with Sima Sistani stepping down as CEO last month and handing the role to board member Comonte.

The stock has plummeted more than 85% year-to-date.

For updates and corrections email newsroom@stocktwits.com

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Editor's note: The above story was updated with analysts' notes from Barclays and Craig-Hallum

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