WeightWatchers jumps nearly 40% on revealing access to Novo's Wegovy

WW International

08/10/2024 19:54

(Updates stock activity)
    ** Shares of WW International  WW.O , also known as
WeightWatchers, jump 38.1% to $1.09 on Tues after co said would
offer compounded version of Novo Nordisk's  NOVOb.CO  popular
obesity drug Wegovy
    ** About 28 mln shares have traded so far on Tues for
busiest session since Apr 2023
    ** Soaring demand for Wegovy and Eli Lilly's  LLY.N 
Zepbound, shown to help patients lose as much as 20% of weight
on average, has led to shortages allowing drug compounders to
produce them under U.S. regulations
    ** "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" -
interim CEO Tara Comonte
    ** The new offering would start at $129, co said
    ** Comonte last month was named interim CEO, replacing Sima
Sistani, who had been at the helm since Feb 2022
    ** Through Mon, WW had shed >90% of value in 2024 due to
concerns around co's growth prospects and liquidity
    ** Short interest in WW stood at ~18% of public float as of
Sept 13, per LSEG data
    ** Stock, which at its peak traded just north of $100 in
2018, fell below $1 on Aug 1

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))