Shares of WeightWatchers International fell more than 22% on Wall Street on Thursday, an abrupt slimming move for the weight-loss company that saw the departure of its most famous shareholder, Oprah Winfrey, a fan of new weight-loss drugs .
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Shares of WW International fell 22.67% to around $3 mid-session on the New York Stock Exchange as media personality Oprah Winfrey is set to step down from the diet company's board, where she served for nearly a decade.
The former TV star, whose figure differences have been the talk of the town throughout his television career, admitted late last year to taking prescription medication for obesity.
These drugs, such as Ozempic, Wegovy or Mounjaro, treat diabetes, help you lose weight and can be used to treat obesity. They are causing panic in the pharmaceutical sector and driving up the stock market valuations of their manufacturers such as the Dane Novo Nordisk or the American Eli Lilly.
“Oprah Winfrey has decided not to stand for re-election at the next annual meeting of shareholders, scheduled to take place in May 2024,” said a WeighWatchers International press release on Wednesday, recalling that the host has been a member since 2015.
Oprah says she will donate her WW shares or its products and exercise options – the value of which is not specified – to the National Museum of African American History and Culture (NMAAHC) in Washington.
The company “supports Ms. Winfrey’s proposal to donate all of her shares to the museum,” the statement said.
WW even states that Oprah is “making this donation to support the NMAAHC's mission, which is to promote the contributions of African Americans and to eliminate any conflict of interest due to the fact that she is taking weight loss medication.”
Founded in the 1960s, the American company, which offers subscription-based weight-loss programs with group and self-help meetings, is facing competition from these new, albeit expensive, drugs.
The group is facing a decline in membership despite pursuing a strategy of supporting people with medications that mimic the satiety hormone GLP-1, such as Ozempic.
The company just announced a loss of $112 million in 2023, on a 14.5% decline in revenue to $889 million, which is expected to fall even further in 2024.
Oprah adds that she will continue to work with WeighWatchers on events. “I plan to participate in a series of forums and public events where I will be passionate about promoting weight health,” the personality said in the WW press release.