Ozempic and GLP-1 Drugs Shift Weight Loss Scale Toward Medicine

When is a breakthrough diabetes and weight loss treatment problematic? Never — except perhaps when it drastically changes the multibillion-dollar weight loss industry, causing ripple effects that are benefitting patients and pharma manufacturers but spell change in other areas of health and wellness.

Invented by pharmaceuticals firm Novo Nordisk as a treatment for Type 2 diabetes, Ozempic was approved by the U.S. Food and Drug Administration (FDA) for weight loss purposes in 2017 after patients reported weight loss as a side effect, leading to new brand names and prescribing patterns.

Ozempic is also marketed as Wegovy and Saxenda, all in the semaglutide class of medications and known as GLP-1 drugs and are now being widely prescribed to treat diabetes and obesity.

While the efficacy of GLP-1 drugs is a major innovation for patients, the weight loss industry of clinics, apps, meals, and subscriptions is shedding clients as more consumers achieve weight loss goals without classes, specialized diet plans, or those subscriptions. That is shaking up the sector and bringing change.

Research firm Market Data LLC, which tracks the diet industry, said the weight loss business in the U.S. rang up $75 billion in sales in 2022, an increase of 15% since 2020, and notes on its website that the sector is now dealing with “soaring demand for new obesity drugs such as Wegovy and Saxenda, with more new drugs coming soon. The market may be entering a new era of medical approaches. Even WeightWatchers is now providing a medical plan.”

File that under “if you can’t beat ‘em, join ‘em” as some weight loss plans are pivoting to programs centering on the use of these drugs, and in some cases dialing back the sale of branded, prepacked dietary meals and other such approaches long in use.

WeightWatchers offers a case study of how major brands in the diet business are changing their business model to embrace the changes. Currently operating over 1,400 locations, in March the company announced it was acquiring Weekend Health, Inc., d/b/a Sequence, a telehealth platform that specializes in access to weight loss treatments.

In that announcement, Sima Sistani, CEO of WeightWatchers, said, “As science advances rapidly, we know there is a significant opportunity to improve outcomes for those using medications. Clinical interventions require better education, access, care management, community and the integration of a complementary lifestyle program for best results. It is our responsibility, as the trusted leader in weight management, to support those interested in exploring if medications are right for them.”

Weight loss and wellness subscription platform Noom is taking a similar approach. In a May 24 announcement, the company introduced Noom Med, saying: “The introduction of GLP-1s for obesity care has revolutionized the landscape for sustainable weight loss and associated health outcomes: clinical trials have shown that for one GLP-1 medication in particular, participants achieved an average of a 12.4% weight loss at 68 weeks of treatment vs. placebo. For the millions of Americans who are taking or who have taken GLP-1 medication, though, lasting success is not achievable without a comprehensive behavior change program.”

Farewell, Jenny Craig

Meanwhile, there are corporate casualties in the shifting weight loss landscape. Jenny Craig announced it has shut down in North America after widely reported rumors broke in April.

In a May 9 post on its corporate Facebook page, the company said: “You may have heard the unfortunate news that Jenny Craig USA and Canada have closed and now filed for bankruptcy.” The Australia and New Zealand operations remain up and running, but the North America website states that “All auto-delivery subscriptions have been canceled.”

Over at Nutrisystem, a May 11 press release said, “The recent news of Jenny Craig’s closure has brought the conversation of brick-and-mortar versus online operations to the forefront yet again.”

Nutrisystem President Stephen Mikulak said in that release, “Today’s consumers want products delivered quickly and easily to their door, especially when it comes to helping achieve their health and wellness goals. Here at Nutrisystem, we know how important it is for customers to have the tools, consistency, and support needed for successful weight loss. That’s why in addition to our weight loss plans, we also offer virtual one-on-one coaching and an intuitive app that adjusts as customers meet weight loss milestones. The world is moving online and for years, we have been evolving to support that shift.”

While it’s not clear that Nutrisystem is adding drug treatment to its meal plans and behavioral resources, market forces are pushing legacy weight loss brands to offer medical options.

The Wall Street Journal noted in April that WeightWatchers’ “membership declined to 3.5 million at the end of 2022 from 4.2 million a year earlier and down from its record high of 5.03 million subscribers at the end of the first quarter of 2020,” with CEO Sima Sistani saying, “For some, these medications can help them adhere to a program like WeightWatchers.”

Medicinal obesity treatments may also begin affecting major surgeries like knee replacements that for decades have been linked to obesity. As The Guardian reported in 2022 about an Australian study on the connection between weight loss and joint surgery, “Dr. Chris Wall, the lead author of the study and senior lecturer at the University of Queensland Rural Clinical School, said modest weight loss has been found to reduce knee osteoarthritis symptoms and obese patients who maintained a 10% bodyweight loss experienced significant improvement in pain and function.”