Sima Sistani, the individual who adopted Ozempic, relinquishes her role as CEO at WeightWatchers.
In Sistani's control, the 61-year-old corporation acquired a virtual healthcare platform that linked patients with medical professionals capable of prescribing weight-loss and diabetes drugs like Ozempic and Wegovy, marking a significant shift for the organization renowned for its face-to-face meetings and portion control advice.
"These medications have been proven, and scientific consensus has evolved to confirm, that obesity is a long-term health issue. Regardless of the potential impact on our business, it's crucial to be transparent about this fact. It's not just about willpower," Sistani had previously explained to CNN about the changes. "What we're saying now is that we've learned more and it's our responsibility to improve, so we can help individuals feel positive and reduce the stigma around discussions about obesity."
However, the transformation failed and the stock decreased by 90% over the year as people opted to use GLP-1 drugs independently, rather than through established companies such as WeightWatchers. The shares slid another 4% on Friday.
The stock experienced another decline in February when influential investor Oprah Winfrey announced her departure from the company's board and donated all her shares to the National Museum of African American History and Culture.
Winfrey became a board member in 2015 and invested in a 10% stake, significantly boosting the struggling company's relevance.
Tara Comonte, a WeightWatchers board member and former CEO of Shake Shack, will take on the interim CEO role immediately, as per a statement released by the company. Prior to joining the company in June 2023, she served as CEO of a fertility technology company.
Comonte's "demonstrated ability to guide cross-functional transformations and promote growth, along with her comprehensive understanding of our mission and dedication to our members, gives us complete faith that she's the ideal individual to guide WeightWatchers through this critical juncture and steer the company towards long-term success," said Thilo Semmelbauer, chairman of the WeightWatchers' board.
The decision to focus on virtual healthcare services and offer GLP-1 drugs like Ozempic and Wegovy expanded WeightWatchers' business scope beyond its traditional face-to-face meetings and portion control advice. Despite Winfrey's significant investment and board membership, her departure and donation of shares to the National Museum of African American History and Culture negatively impacted the company's stock.
