The relatively new class of weight loss drugs, which feature semaglutide as an active ingredient, has made a massive difference in many people’s health and well-being. Sold under more familiar brand names such as Ozempic and Wegovy, semaglutide effectively reduces users’ blood sugar levels and their appetite, because it creates a signal that tells their brains they are full. For patients diagnosed with obesity, diabetes, and other related conditions, these medical solutions to their diseases have helped them achieve healthier, safer physical conditions.

Such benefits in turn have created massive markets for the products, especially in the United States, where approximately 42 percent of the population struggles with being dangerously overweight. New markets prompt new competitors, and accordingly, firms that already have marketed weight loss solutions are seeking to appeal to consumers. Both Noom and WeightWatchers offer access to semaglutide prescriptions, in addition to their existing advice and encouragement tactics, in their attempts to remain competitive. Their expanded offerings appear to reflect the lessons they have learned recently, such as following the exit of companies such as Jenny Craig, which arguably failed due to its inability or unwillingness to keep up with the latest developments in care and treatment for the medical conditions that lead to obesity.

Both Noom and WeightWatchers firms promise that their entries into prescription medicine are guided and supported by physicians on staff, such that customers must demonstrate their medical need for the drug before they can receive it. For customers with such medical requirements, obtaining their prescription through WeightWatchers or Noom offer several benefits, compared with receiving it from doctors.

First, this channel allows them to combine existing recommendations for maintaining healthy weight, such as tracking calories and exercising, that the companies already offer with a new tool. They can manage and maintain all their weight loss efforts in one place, with ongoing support that likely surpasses what they might receive from a busy physician. Second, though obesity is an acknowledged medical condition, many people who suffer from it feel embarrassed or judged. Some patients report that their doctors have denied them the medically proven solution, even when their health condition clearly qualifies them. Visiting a doctor and requesting a prescription for Ozempic may be difficult for these consumers, whereas receiving the drug from online companies that embrace nonjudgmental attitudes as central to their brand identities may feel much more comfortable. Third, due to massive demand, it can be difficult to obtain supplies of Wegovy or Ozempic; Noom and WeightWatchers promise an alternative channel.

The expanded market for these drugs also raises some concerns, of course. Popular media frequently reports on inappropriate uses of Ozempic by celebrities, and arguably, easier access through profit-oriented firms might encourage further abuses. Consumers who do not qualify to take these drugs might pursue a prescription to reach an unhealthy and false standard of thinness, especially if they suffer from body dysmorphia. Both Noom and WeightWatchers note that they have precautions in place to avoid such abuses, but the potential for getting around such restrictions seems obvious.

In addition, obtaining Wegovy or Ozempic through WeightWatchers or Noom is more expensive for consumers than getting it from a doctor. For example, a regular, basic Noom subscription costs about $42 per month; adding the Noom Med service, which is required to receive the prescription medication, requires an additional $49 per month, such that the cost more than doubles. At WeightWatchers, the subscription is $99 per month, beyond fees for counselling or meal services. Then beyond the subscription fees, consumers still must pay for the medications (if they are not covered by their insurance), which can exceed $1000 per month.

The drugs require a lifelong commitment; when people stop taking semaglutide, they nearly invariably gain any weight they had lost. For weight loss companies, the appeal of getting into this market thus is clear. What remains is the need to make sure the value and benefits they provide to consumers are equally clear.

Discussion Questions:

1. How should Noom and WeightWatchers market their new offerings to consumers? Propose a marketing plan for one or the other.
2. What precautions should be established to ensure healthy prescriptions of weight loss drugs? Can for-profit companies be trusted to establish them on their own, or are legal restrictions necessary?
3. Are the prices charged by WeightWatchers and Noom justifiable?

Sources: Aria Bendix, “Ozempic and Wegovy Force Weight Loss Companies to Upend their Approaches,” NBC News, June 4, 2023; “Adult Obesity Facts,” May 17, 2022, https://www.cdc.gov/obesity/data/adult.html;  “FDA Drug Shortages,” https://www.accessdata.fda.gov/scripts/drugshortages/dsp_ActiveIngredientDetails.cfm?AI=Semaglutide%20(WEGOVY®)%20Injection&st=c&tab=tabs-1