LifeMD Inc. (LFMD), a leading virtual primary care provider, witnessed a significant surge of 9% in its stock price early Wednesday following the announcement of its partnership with Medifast Inc. (MED). Medifast is a renowned wellness company that is well-known for its revolutionary habit-based and coach-guided lifestyle service, Optavia. The collaboration aims to introduce a groundbreaking weight management program that incorporates the groundbreaking GLP-1 drugs.
GLP-1, which stands for gut hormone mimicking medications, has gained immense popularity due to its remarkable ability to control blood sugar levels. Developed by Eli Lilly & Co. (LLY) and Denmark’s Novo Nordisk (NVO) (NOVO.B), these drugs have experienced shortages in the past year. Their success has propelled the weight-loss industry to new heights, and it is projected to reach a staggering $100 billion by 2030.
With this strategic move, LifeMD gains access to a thriving market opportunity. The newly formed alliance between LifeMD and Medifast will offer customers an all-inclusive program that encompasses personalized one-on-one Optavia Coach support, proven plans, scientifically developed products, and the proprietary Habits of Health(R) Transformational System. Additionally, participants will benefit from an engaging community that fosters motivation and support.
To further solidify their partnership, Medifast has committed to investing $20 million in LifeMD, including purchasing $10 million worth of its stock.
Both companies will convene a conference call at 10:00 a.m. Eastern Time to discuss the specifics of this agreement.
Throughout the year, LifeMD’s stock has demonstrated impressive growth, totaling an astounding 318%. In comparison, the S&P 500 (SPX) has gained a modest 21% in the same period.
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