Chinese Public Awareness of Weight Control Rises, with 70% Seeking to Lose Weight

A white paper on Chinese adults' health and weight control revealed that 70% of the population hopes to lose weight and over 60% are willing to invest time and effort into it. However, there is a discrepancy in self-assessment, with half of adults misjudging their body mass index (BMI). The report also warns that 70.5% of adults will be overweight or obese by 2030 without intervention, leading to estimated medical expenses of $61 billion. Authorities have launched a campaign to foster a supportive environment for weight control and encourage hospitals to set up obesity prevention and control centers.

Health and wellness companies are increasingly embracing weight-loss drugs to avoid the fate of WeightWatchers, which recently filed for bankruptcy. The shift towards these medications, known as GLP-1 agonists, has been driven by their effectiveness in helping individuals lose 15%-20% of their body weight [1].

However, newer telehealth companies are facing challenges from federal regulators who are cracking down on cheaper versions of weight-loss drugs such as Novo Nordisk's Wegovy and Eli Lilly's Zepbound. These cheaper alternatives have been a significant profit driver for these companies, but their sales are now being blocked due to FDA regulations [1].

Telehealth companies like Eden and Noom have been successful in integrating these drugs into their offerings, presenting them as a superpower weight-loss tool. Noom, for instance, has seen increased engagement among its users taking these medications [1].

The success of weight-loss drugs has also led to a rise in demand for related supplements. Health retailers such as The Vitamin Shoppe and GNC have seen a spike in sales of supplements designed to mitigate side effects of these drugs [1].

WeightWatchers, despite its bankruptcy, is still trying to pivot by incorporating these drugs into its program. A spokesperson noted that the drugs are a growing part of their business and cited a study showing significant weight loss among their clinic patients [1].

The trend towards weight-loss drugs is expected to continue, with some analysts forecasting annual sales of $150 billion in the next decade. However, the changing regulatory landscape presents challenges for companies looking to capitalize on this trend. One potential solution is for wellness companies to partner with brand-name drugmakers, as these companies need partners with access to patients [1].

References:
[1] https://www.investing.com/news/stock-market-news/wellness-companies-eager-to-avoid-weightwatchers-fate-embrace-weightloss-drugs-4037685