WeightWatchers stock surges 70% after company agrees to buy obesity treatment platform

Shares of WW International, besides known arsenic WeightWatchers, skyrocketed Tuesday aft the institution said it planned to bargain Sequence, a telehealth level that provides attraction for obesity.

The banal was up much than 70% connected Tuesday afternoon. Its marketplace worth stood astatine much than $470 million.

"It is our responsibility, arsenic the trusted person successful value management, to enactment those funny successful exploring if medications are close for them," WW CEO Sima Sistani said successful a Monday announcement.

Tuesday's leap follows a twelvemonth of sagging show for the stock. Shares of the institution were down 57% implicit the past twelvemonth arsenic it struggled to pivot to wellness and determination distant from value loss.

Sistani took implicit arsenic main enforcement astatine the extremity of February, steering the institution backmost toward value nonaccomplishment messaging.

The Sequence announcement comes arsenic companies crossed the value nonaccomplishment manufacture look to connection obesity medications arsenic a pathway to customers looking to shed pounds.

The inclination has led to a shortage successful medications similar Ozempic, which are commonly prescribed for Type 2 diabetes.