Wellness Industry Turns to Weight Loss Drugs Amid WeightWatchers Collapse
Weight Loss Drugs are now rapidly embracing by health and wellness companies, to avoid the same fate as WeightWatchers, which filed for bankruptcy this week. The move marks a turning point in the $4.5 trillion wellness sector, as companies race to adapt to a new era of medically assisted weight management.
Why Did WeightWatchers File for Bankruptcy?
WeightWatchers, once the gold standard in weight management, found itself falling behind as Americans increasingly opted for pharmaceutical solutions over point-based diet plans and group sessions. In its bankruptcy filing, the company cited a massive decline in user interest, fueled by the rise of GLP-1 weight-loss drugs and a shift in consumer mindset—from weight loss to overall wellness.
WeightWatchers’ traditional in-person model struggled to keep up with the likes of Noom, Eden, and Hims & Hers, which offer telehealth services and easy access to these modern medications. CEO of Eden, Adam McBride, bluntly stated, “They weren’t listening to their members.”
The Rise of Telehealth and Unbranded Medications
New-age telehealth companies like Noom and Hims & Hers saw massive growth by offering affordable, compounded (unbranded) versions of blockbuster drugs like Wegovy (Novo Nordisk) and Zepbound (Eli Lilly). These medications, classified as GLP-1 agonists, have shown the ability to help patients lose 15%–20% of their body weight—a game changer in the wellness space.
According to Geoff Cook, CEO of Noom, clinical subscriptions—which include access to doctors and prescriptions—now make up more than half of the company’s revenue. In fact, users on these drugs are engaging more actively with the platform, logging meals and tracking progress at higher rates than those on traditional plans.
But a new challenge has emerged: the U.S. Food and Drug Administration (FDA) has begun cracking down on compounded versions of these drugs now that brand-name versions are no longer in shortage.
Supplements Surge: How Retailers Are Capitalizing
Retailers aren’t staying behind either. Companies like The Vitamin Shoppe and GNC are riding the wave by launching specialized supplements and services tailored for GLP-1 users. The Vitamin Shoppe has seen a 20%+ spike in sales of products aimed at managing side effects like appetite loss and muscle weakening.
Their new telehealth service, Whole Health Rx, connects users with licensed medical providers who can prescribe weight-loss drugs and recommend dietary supplements to maintain nutrient balance.
Meanwhile, GNC has carved out in-store sections specifically for GLP-1 users, offering high-protein and fiber-rich products.
A New Path Forward: Partnerships with Pharma Giants
With compounded drug sales dwindling due to FDA actions, companies now face the hard truth: future success might depend on collaborating directly with brand-name pharmaceutical giants like Novo Nordisk and Eli Lilly.
Healthcare analyst Karen Andersen from Morningstar points out that these drugmakers need partners with direct access to patients. “But forging partnerships with competitors is no easy task,” she warns. “It will be a rocky path.”
Can WeightWatchers Still Turn It Around?
Despite its current struggles, WeightWatchers is trying to pivot. The company now considers GLP-1 drugs an “essential part” of its business model. According to internal data, clinic participants on GLP-1 drugs lost an average of 21% of their body weight, with an additional 2% lost after transitioning to its behavioral program.
Still, its survival will likely depend on how effectively it can modernize its platform, shed outdated methods, and compete with digitally native brands.
Conclusion
GLP-1 medications like Ozempic, Mounjaro, Wegovy, and Zepbound were initially developed for diabetes treatment but have rapidly gained popularity for their weight-loss benefits. These drugs slow digestion, increase satiety, and significantly reduce appetite, revolutionizing the health and wellness market.