How digital health startups are cashing in on obesity treatment, Ozempic

  • Weight loss drugs such as Ozempic and Wegovy have increased in popularity.
  • Digital health companies are using different strategies to profit from obesity treatment and weight loss.
  • A Rock Health report lays out three main ways startups are competing for market share.

As weight loss drugs like Ozempic and Wegovy rise in popularity, digital health startups are entering the market – offering everything from prescriptions to weight management tools to compete for a share of the US market. $13 billion.

That’s according to a new report from Rock Health, which lays out three main ways digital health companies are competing to get into obesity treatment.

Weight loss injections like Ozempic and Wegovy have been found to help people lose around 15% to 20% of their body weight, signifying a drastic change in the obesity treatment space. While drugs focused on weight reduction could grow the obesity treatment market to $54 billion by 2030, according to Morgan Stanley, Rock Health researchers say the solution to sustainable obesity treatment may lie with companies. from digital health, which offer ways to consistently keep the weight off.

Rock Health said digital health companies make up about 55%, or $7 billion, of the obesity care market today.

Companies focused on prescribing weight-loss drugs are making it easier for patients to access

Some companies — like Found, Form, Calibrate and Noom — jumped at the opportunity to give patients access to obesity treatments through their websites or apps. These companies offer weight loss curricula combined with medications like Ozempic and Wegovy and often partner with employers to make their programs more accessible to patients.

Online healthcare companies such as Teladoc, Ro and Alpha have also recently expanded into weight loss care.

Meanwhile, companies focused on nutrition and diet have made moves to enter the space. In March, WeightWatchers announced it would acquire weight management platform Sequence in a deal worth $106 million.

But the high costs of drugs like Ozempic and Wegovy have forced employers, insurers and government programs like Medicare to grapple with expanding coverage.

Some startups are focused on helping people lose weight without medication

Meanwhile, some companies are getting out of the weight loss drug arena.

Weight management apps like BODi focus on providing nutrition and fitness programs. Companies like DietBet, meanwhile, offer ways for users to think about weight loss as an interactive experience where users can participate in a community-focused weight loss challenge.

Other companies offer apps that can be used alongside prescriptions.

Rock Health said there is a growing number of startups focused on tools to help people lose weight and maintain their weight loss.

Software companies like Prism Labs, for example, offer 3D “body mapping” to calculate body composition. Likewise, Spren says it allows users to track their body composition by taking a selfie with their smartphone cameras.

Other companies, like Qardio, are focused on using technology like smart scales to help customers assess their body mass index and muscle mass. Rock Health said these platforms can be used in conjunction with weight loss medications to help track progress.

Omada Health previously told Insider that it plans to act as a gatekeeper for the weight-loss drugs, but will not prescribe them itself. The company works with employers and will allow them to cover obesity treatments for patients enrolled in its weight management program.

Rock Health added that as the market evolves, it expects new types of companies to emerge to address various areas in obesity treatment.

Leave a Reply

Your email address will not be published. Required fields are marked *