WeightWatchers inventory surges after Sequence deal

shares of WW Internationalalso known as WeightWatchers, soared on Tuesday after the company announced it would buy Sequence, a telehealth platform used to treat obesity.

The stock closed 79% higher on Tuesday. Its market value was more than $488 million.

“As the trusted leader in weight management, it is our responsibility to support those interested in finding out if medication is right for them,” WW CEO Sima Sistani said in an announcement Monday.

Tuesday’s jump follows a year of flagging performance for the stock. The company’s shares have fallen 57% over the past year as it struggled to focus on wellness and move away from weight loss.

Sistani took over as CEO in late February and steered the company back toward weight loss.

The Sequence announcement comes as companies in the weight-loss industry seek to offer obesity drugs as a way for customers to shed pounds.

The trend has led to a shortage of drugs like Ozempic, which are commonly prescribed for type 2 diabetes.

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