WeightWatchers CEO Sima Sistani has issued an internal memo to employees in an effort to reassure them about the company’s financial stability. She emphasized that WeightWatchers’ new clinical business, focused on countering the threat of GLP-1 weight loss drugs, is growing more rapidly than anticipated.
The memo, which was obtained by CNBC, follows a significant decline in WW shares. The stock market value of the renowned weight loss company has dropped to under $150 million due to concerns regarding its debt levels and the growth prospects of its core weight loss business.
These concerns arise at a time when new blockbuster drugs like Novo Nordisk’s Ozempic and Wegovy, as well as Eli Lilly’s Zepbound, are gaining prominence.
In the memo, Sistani addressed the media coverage, stating, “I wanted to take a moment to address some of the breathless media coverage.”
Although shares stabilized later in the week following the news on Feb. 28, when Oprah Winfrey announced her intention to step down from the company’s board and donate all her shares to a museum’s endowment, they have since experienced significant selling pressure, hitting a new 52-week low on Thursday.
Over the past month, shares have fallen by 58 percent. The stock’s heightened volatility is attributed to its debt load, short interest, and general concerns about the impact of new weight loss drugs.
