Prof G Markets: Scott’s NJOY Stake, the JetBlue/Spirit Merger, and WeightWatchers Buys Ozempic Maker

Acquisition Details

Weight Watchers' acquisition of Sequence, a telehealth service, marks a strategic shift back to its weight loss roots. The deal, valued at $106 million, includes consultations and prescriptions for weight loss drugs like Ozempic, which has shown significant results in reducing body weight. Scott Galloway believes Weight Watchers secured a favorable deal, considering Sequence's $25 million annual run rate and the potential for recurring revenue in a growing market 1.

Weight Watchers has always been a great business. It's got three and a half million subscribers. Subscriptions are 88%, or nine and $10. The revenue slowed. It declined 14% year on year in 2022.

--- Scott Galloway

The acquisition aligns with Weight Watchers' strategic goals to capitalize on the burgeoning weight loss industry 2.

   

Ozempic Insights

Ozempic, a weight loss drug, is revolutionizing the industry with its effectiveness, leading to a surge in prescriptions and market interest. Scott Galloway highlights the drug's origin, tracing back to research funded by the Department of Veteran Affairs, which discovered a hormone in Gila monster venom that stimulates insulin production 3. This discovery paved the way for semaglutide, Ozempic's active ingredient, to become a game-changer in weight management.

The most common version of Ozempic is around $907 for a 30 day supply and not covered by insurance. I would argue that that's probably the best investment anyone can make if they can substantially reduce their bmi.

--- Scott Galloway

The drug's market impact is evident, with Weight Watchers' stock soaring 70% following the acquisition news 1.

   

Market Trends

The weight loss industry is experiencing significant shifts, with Weight Watchers' strategic moves reflecting broader market trends. Despite a 92% stock decline over five years, the company is poised for growth in a $50 billion market by 2030, driven by the increasing prevalence of obesity 2. Scott Galloway emphasizes the need for honest conversations about weight and obesity, recognizing the complexity of the issue beyond individual choices 4.

I think we need an honest and open conversation and to talk realistically about pragmatic solutions, recognizing it's a complex problem.

--- Scott Galloway

This cultural shift towards transparency and pragmatic solutions could redefine consumer habits and market demand.