LifeMD Inc.’s stock LFMD soared 9% early Wednesday, after the virtual primary care provider said it’s teaming up with Medifast Inc. MED, a wellness company known for its habit-based and coach-guided lifestyle service Optavia, to create a clinically supported weight management program that will include the new class of weight-loss drugs called GLP-1. The drugs developed by Eli Lilly & Co. LLY and Denmark’s Novo Nordisk NVODK:NOVO.B are named after a gut hormone that they mimic to control blood sugar have become highly popular and have even suffered shortages in the past year. LifeMD said the move will give it access to a market that’s expected to reach $100 billion by 2030. The partners will offer a program that includes one-on-one Optavia Coach support, proven plans and scientifically developed products, a proprietary Habits of Health(R) Transformational System, as well as community support. Medifast has agreed to invest $20 million in LifeMD, including buying $10 million of its stock. The companies will hold a conference call at 10:00 a.m. Eastern to discuss the agreement. LifeMD’s stock has gained 318% in the year to date, while the S&P 500 SPX has gained 21%.
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