The rise of GLP-1 medications like Ozempic, Wegovy, and Mounjaro has fundamentally reshaped the weight loss industry. The contrasting fates of WeightWatchers and Hims & Hers—both occurring within the same month in May 2025 - perfectly illustrate this pharmaceutical disruption.
WeightWatchers: From $7 Billion to Bankruptcy
Once valued at $7 billion with $1.5 billion in annual revenue, WeightWatchers recently filed for Chapter 11 bankruptcy protection. The 62-year-old company's decline was swift: revenue dropped to under $800 million by 2024, subscribers fell 12% to 3.3 million, and the company couldn't service its $1.6 billion debt load.
WeightWatchers saw the threat coming. The company spent $106 million acquiring telehealth startup Sequence in 2023 to enter the prescription weight loss market. But the acquisition failed to turn things around. So one could argue that the problem wasn't strategy - it may have been execution. WeightWatchers' culture, built around weekly weigh-ins and behavioral modification, found it hard to adapt to a market demanding pharmaceutical solutions and digital convenience.
The symbolism was complete when Oprah Winfrey, the company's most famous ambassador, revealed she was using GLP-1 medications and resigned from the board in February 2024, sending shares down 20%.
Hims & Hers: Riding the Wave to $1 Billion
In the same month as WeightWatchers' bankruptcy, Hims & Hers raised $1 billion - their largest round yet. The telehealth platform's first-quarter revenue doubled to $586 million, with profits jumping four-fold to $50 million. Subscribers grew 38% to 2.4 million, according to the company.
Founded in 2017, Hims & Hers expanded into weight loss in late 2023, perfectly timing the GLP-1 boom. When brand-name drug shortages created opportunities, they added compounded GLP-1 medications. When the FDA ended shortages and their stock dropped 25%, they pivoted again, partnering with Novo Nordisk to distribute Wegovy.
The company's digital-first approach and platform infrastructure have positioned them to expand across multiple conditions. And in the context of women’s health, CMO Jessica Sheard recently told Axios that Hims & Hers is planning a strong push into women's mid-life health.
Why This Matters for Healthcare Leaders
The stark contrast between these two companies raises a critical question I often challenge large corporate organizations to ask themselves: Which micro or macro trend could actually take you out of business? In healthcare, disruption often comes from unexpected directions. Consumer devices supporting pelvic health could reduce incontinence product sales. Digital therapeutics apps could displace traditional physical therapy. GLP-1 drugs decimated traditional weight loss models. In today’s ecosystem it sometimes truly feels like there is no such thing as too big to fail anymore.
WeightWatchers saw this threat and tried to respond through acquisition. But seeing disruption and successfully navigating it are different challenges. For large organizations, M&A and strategy are about understanding market dynamics and future-proofing as tides change. Buying the right companies is one side of the equation, but it’s also about having the organizational capability to integrate and execute new business models.
The Broader Lesson
The GLP-1 revolution shows how quickly scientific advancement can disrupt established industries. WeightWatchers' struggles weren’t about missing the trend - they were about the inability to transform organizational culture. Their DNA was built around slow, community-based behavior change. Even when leadership recognized the need for telehealth and prescription medications, it seems the company culture couldn't execute the pivot fast enough.
Hims & Hers, born digital, had the cultural flexibility to expand as their platform approach and rapid iteration capabilities enabled them to adapt as the market evolved.
The GLP-1 revolution demonstrates that successful transformation requires both foresight and the organizational agility to act on it. Healthcare companies must continuously scan for potential disruptors and build the internal capabilities to respond effectively. As WeightWatchers maybe learned too late, recognizing the threat is only half the battle.
