WW International (WGHW 9.25%), owned of the storied Weight Watchers diet system, wasn't slimming down on Monday -- at least as far as its equity was concerned. The company's share price zoomed over 9% higher on the day, thanks in no small part to a deal it announced with a major e-commerce enterprise. With that rise, the company's stock crushed the S&P 500's (^GSPC 1.07%) 1.1% advance.
Weight-loss expert gains a distribution partner
Before market open that day, WW International announced it has signed a collaboration agreement with Amazon Pharmacy to distribute medication to customers. The weight-management medications offered by WW International will be available through the ubiquitous retailer's medicine distribution unit.
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In October 2024, the company began offering compounded (i.e., custom-made) GLP-1 weight loss drugs under a new subscription program.
In the press release trumpeting the new Amazon arrangement, WW International quoted chief operations officer Jon Volkmann as saying of his company's customers that "we're committed to making it simpler and faster to access the weight management medications they need, and our collaboration with Amazon Pharmacy does exactly that."
No estimates given
WW International did not provide any estimates for how the Amazon pact might affect its fundamentals. That's almost unnecessary, as adding an important distribution channel for a white-hot set of products is sure to be beneficial, to whatever degree it bolsters revenue or profitability.
