Q: Hello,
I would appreciate your thoughts on how the arrival of new diabetes/weight loss drugs (Ozempic, Wegovy and Mounjaro) might potentially impact the future revenues at Body Contour Centers? Could the advent of these new medications not have a significant potential impact on the existing players in the weight loss space?
Are you able to provide an estimate of what proportion of Alaris Equity Partners' existing annual income is attributable to their investment in Body Contour Centers?
Thank you!
I would appreciate your thoughts on how the arrival of new diabetes/weight loss drugs (Ozempic, Wegovy and Mounjaro) might potentially impact the future revenues at Body Contour Centers? Could the advent of these new medications not have a significant potential impact on the existing players in the weight loss space?
Are you able to provide an estimate of what proportion of Alaris Equity Partners' existing annual income is attributable to their investment in Body Contour Centers?
Thank you!
5i Research Answer:
AD invested $546M into Body Contour, so it was a very substantial purchase based on the size of Alaris. It converted its royalty into preferred shares, and we would 'estimate' it represents about 20% to 25% of revenue. It is early days in the weight loss drug regimen, but there will be an impact, we would expect, simply by reducing the available client pool somewhat. That being said, we do believe that the Body Contour clientele is probably fairly different from the 'drug' clientele. But trying to quantify impact at this stage wouldn't be much more than a guess.