Weight Watchers (WW) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic transformation and business overview

• Debt reduced from $1.6 billion to $465 million, halving interest expense and enabling reinvestment in growth initiatives.

• Two main business lines: behavioral (Core and Core+ products) and clinical (GLP-1 prescription and support).

• Virtual experiences and new programs (GLP-1 Success, menopause) launched to modernize offerings and foster community.

• Core+ behavioral product achieved three consecutive quarters of subscriber growth, a rare occurrence in the past 15 years.

• Clinical business subscriber count grew nearly 56% in Q2, with revenue share expected to rise from 10% in 2024 to 25-30% by 2026.

Clinical business and GLP-1 integration

• Med+ telehealth platform provides high-touch, obesity-focused care with unlimited clinician access and insurance navigation.

• 72% of Med+ members using the digital GLP-1 Success program report better side effect management.

• Differentiation centers on wraparound care, behavioral support, and long-term health habit formation.

• B2B partnerships (e.g., UnitedHealthcare, Sam's Club) and LillyDirect listing expand clinical reach.

• Direct-to-consumer and employer channels are being diversified to drive sustainable clinical subscriber growth.

Behavioral business and technology enhancements

• Core+ leverages virtual communities and targeted programs (e.g., midnight snacker groups) to drive engagement.

• AI-powered app features (photo food tracking, voice input, barcode scanning) improve usability and tracking accuracy.

• Points program is research-based, offering a unique, science-driven approach to nutrition and weight loss.

• Emotional support and accountability remain key differentiators, with millions of members benefiting from community.

• Macro headwinds include competition from DIY solutions and AI, but technology upgrades aim to stem revenue decline.