Optavia Parent Medifast Partners With LifeMD to Enter Medically Supported Weight Loss; Ends Dividend

BALTIMORE, December 13, 2023 --

Medifast, Inc., parent of OPTAVIA, launched what it called the first phase of a business transformation, entering the medically supported weight-loss market through a collaboration with virtual primary-care provider LifeMD, Inc. The arrangement pairs OPTAVIA's coach-guided program with LifeMD's board-certified affiliated clinicians and access to weight-loss medications, including GLP-1 drugs.

Medifast committed 20 million dollars to LifeMD, including an expected 10 million dollars to support the collaboration and enhance LifeMD's platform and operations and a 10 million dollar purchase of LifeMD common stock. Medifast received board observer rights and registration rights. It also launched two product bundles for customers using weight-loss medications, aimed at nutrition and preserving muscle.

Medifast's board discontinued the company's quarterly cash dividend, effective immediately, to redirect capital toward technology, marketing and growth initiatives intended to improve customer acquisition, while preserving flexibility for share repurchases. Chairman and Chief Executive Dan Chard called it a pivotal moment and said the company was beginning an aggressive transformation of the OPTAVIA brand.