Guggenheim argues that WW (WW) investors are “overreacting” to Eli Lilly’s (LLY) announcement of its LillyDirect program, which helps patients get access to Lilly’s weight loss, migraine and obesity drugs. The LillyDirect announcement is “mostly old news” since Lilly has had a partnership with privately held telehealth provider Form since at least last fall, says the analyst. Form offers patients online consultations and qualified patients can get a GLP-1 prescription, similar to WW’s Clinical business, the analyst explains. Eli Lilly plans to expand the program in the future to include more vendors and services, which the firm thinks could include WW and others. Guggenheim maintains a Buy rating on WW shares, which are down 91c, or 12%, to $6.72 in afternoon trading.
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