UK weight loss market: M&A opportunities

Obesity remains a significant public health challenge in the UK, with over 26% of adults classified as obese and an additional 38% considered overweight. This epidemic not only impacts individual health, but also places a substantial burden on the NHS and economic performance.

Recent advancements in weight-loss interventions, including pharmacological treatments and surgical procedures, alongside treatments offered by online and in-person pharmacies, are transforming the healthcare landscape and presenting new M&A opportunities.

Recent sector developments

Surgical intervention

In recent years, GLP-1 receptor agonists, such as Novo Nordisk's Wegovy and Eli Lilly's Mounjaro, have emerged as effective treatments for weight-loss. Clinical trials show that patients lost an average of 14% of their body weight on Wegovy and 20% on Mounjaro over 12 months post-treatment, respectively. Several more injectable weight-loss drugs that may prove to be more effective, including CagriSema developed by Novo Nordisk, are in the clinical trial phase.

At the same time, pharmaceutical companies are racing to develop oral GLP-1 treatments that offer greater convenience and affordability, with significant rewards for first movers. Leading the charge include Pfizer, AstraZeneca, Viking Therapeutics, Merck & Hansoh Pharma, and Verdiva Bio, which are all advancing oral weight-loss drugs.

However, the significant surge in demand for GLP-1 agonists has led to concerns regarding supply constraints, appropriate prescription practices, and long-term patient management. Indeed, from December 2024, the NHS issued guidance to stop pharmacists distributing Rybelsus (Semaglutide) to new patients, due to supply issues. This demand pressure is driving M&A activity, as companies look to vertically integrate supply chains to secure access to raw materials and ensure supply continuity.

Pharmacy

Pharmacies have transformed access to weight-loss treatments, with both digital platforms and bricks-and-mortar pharmacies now offering self-administered injectable weight-loss drugs. In response, the General Pharmaceutical Council (GPhC) in February 2025 updated its guidance for online pharmacies, requiring independent verification of a patient’s weight, height, and BMI before prescribing weight-loss drugs. Firms including Novo Nordisk and Eli Lilly are also currently facing lawsuits over claims that its GLP-1 drugs may cause severe gastrointestinal complications, though, no legal outcomes have yet been reached. This regulatory shift has created investment opportunities in digital and AI-driven verification and health assessments.

For individuals with severe obesity, surgical interventions provide an alternative weight-loss solution. Procedures such as gastric bypass surgery have been shown to deliver substantial and sustained weight reduction, with patients typically losing 60–80% of their excess body weight. These surgeries also lead to significant improvements in obesity-related conditions such as type 2 diabetes, hypertension, and sleep apnoea. However, these procedures are highly regulated, invasive, and require long-term patient commitment, limiting access. As the number of weight-loss centres grows, we may see private hospital providers acquiring weight-loss-focused clinics to expand their service offerings and capitalise on rising demand.

M&A activity

Most deal activity in the obesity and weight-loss sector is dominated by international big pharma, as companies race to sustain and expand their drug pipelines.

1. Eli Lilly purchased Versanis for ~£1.5 billion (July 2023) – Versanis' key asset, Bimagrumab, a monoclonal antibody in phase 2 trials for obesity, supports Eli Lilly’s expansion into obesity treatment and complements its existing metabolic disease portfolio.

2. Novo Nordisk acquired Inversago Pharma for ~£900 million (August 2023) – Inversago Pharma’s lead development asset, INV-202, an oral CB1 inverse agonist for obesity and related disorders, enhances Novo Nordisk’s pipeline and aligns with its strategy to develop next-generation weight-loss treatments.

3. Roche bought Carmot Therapeutics for ~£2.1 billion (December 2023) – Carmot Therapeutics brings three clinical-stage incretin-based assets for obesity and diabetes treatment. The acquisition strengthens Roche’s position in the growing weight management and metabolic disorder sector.

However, alongside drug development, new markets have emerged around the wider obesity-treatment ecosystem, creating attractive opportunities for alternative buyers.

4. WeightWatchers acquired Sequence for ~£100 million (March 2024) – Sequence, a telehealth platform providing access to GLP-1 weight-loss medications, was purchased to integrate prescription weight-loss solutions into WeightWatchers' existing programmes, expanding its offering in obesity management.

5. Hims & Hers acquired a compounding pharmacy for ~£25 million (August 2024) The acquisition strengthens Hims & Hers' ability to produce knock-off weight-loss medications, reinforcing its position in the direct-to-consumer healthcare market.

Overall, this shows there is several potential buyers for businesses that operate in the weight-loss management space in the UK.

Opportunities

• Pharmaceutical supply chain integration – the escalating demand for weight-loss medications, particularly GLP-1 receptor agonists, has led to notable supply constraints. In response, pharmaceutical companies are making substantial investments to enhance manufacturing capabilities and distribution networks. For instance, Novo Nordisk has been running its production facilities 24/7 and budgeted £4.8 billion in 2024 to expand its facilities to meet excess demand. Therefore, companies may seek vertical acquisitions to control supply chains or acquire raw material suppliers to secure priority access.
• Comprehensive weight management centres – integrating medical, surgical, and behavioural interventions into dedicated clinics offers a holistic approach to obesity treatment. As a result, in the UK the weight management market is projected to reach £1.5 billion by 2027, reflecting a compound annual growth rate (CAGR) of 9%. As new entrants enter the growing weight-loss market, existing players may execute buy-and-build strategies to gain market share and scale operations.
• Expansion of OTC GLP-1 products – there has been an increase in demand for GLP-1 products by those who do not meet the minimum BMI threshold. Therefore, pharmaceutical and other companies have expanded, and continue to expand, their tablet range offering, introducing GLP-1 product alternatives, available to purchase online and in stores without a prescription. Online and physical pharmacies have introduced tablets with natural ingredients, naming them “GLP-1 stimulating tablets”, which help to stimulate the production of GLP-1 in the body, thus reducing hunger. Other companies have been innovative and created other techniques. For example, Kind Patches’ GLP-1 Patches promote the production of GLP-1 in the body helping to reduce hunger and promote weight loss.
• Tech-enabled solutions commanding high multiples – advancements in artificial intelligence (AI) and digital health are transforming obesity care. For example, the NHS Digital Weight Management Programme, a 12-week online behavioural and lifestyle programme, supports adults living with obesity who also have a diagnosis of diabetes, hypertension, or both. Additionally, several companies offer evidence-based digital health coaching to manage and prevent chronic conditions like type 2 diabetes and obesity. Companies leveraging AI, telemedicine, and remote monitoring in weight management will continue to attract premium valuations in the M&A market.
• Exit opportunities for surgical and weight-loss drug companies – exit for companies in the surgical and weight-loss medication sectors could be significant as the US healthcare system shifts toward a more clinical-led, outcomes-focused, and preventative model. As this transformation unfolds, there may be increasing integration between surgical interventions and weight-loss medications, presenting potential synergies in the market, especially with RFK Jr's appointment as US Health Secretary.

The future and beyond

With obesity treatment driving innovation in UK healthcare, businesses have a prime opportunity to capitalise on market shifts through strategic M&A, investment in scalable treatment models, and expansion into digital health services. Consolidation among private clinics, online pharmacies, and healthcare technology providers is set to accelerate, creating lucrative deal opportunities for both financial sponsors and strategic buyers looking to shape the future of weight management in the UK.

About the author

Ramesh Jassal is a partner at Heligan Group, with over 15 years of mid-market M&A advisory and 20+ years of healthcare industry experience. Prior to Heligan, he served as a senior director at Clearwater and spent five years at 3i Private Equity. His early career includes eight years as a senior research scientist. At Heligan, he focuses on business development and managing relationships with owner-managed businesses, corporates, and private equity firms. Jassal has directed over 50+ domestic and international transactions, with a total value exceeding £3.5 billion. He is recognised as a leading UK healthcare M&A advisor, specialising in health and social care, medical equipment, devices, and pharma/life sciences. He holds a PhD in Molecular Biotechnology and an MBA from the Open University.