As Ozempic and Wegovy take off, this tech startup just raised  million to tackle weight loss with data


Weight loss has at all times been huge enterprise, however it’s exploded of late due to surging demand for Ozempic, Wegovy and different new diabetes and weight problems medicine.

In the primary half of 2023, gross sales of Ozempic and Wegovy rose by 58% and 363%, respectively. That’s after quarterly prescriptions for these sorts of GLP-1 remedies, which mimic a hormone within the intestine to suppress an individual’s urge for food, increased 300% between early 2020 and the tip of final 12 months.

But as customers and companies pour more cash and sources into tackling the weight problems epidemic, which prices the U.S. greater than $170 billion a 12 months, drug builders aren’t alone in developing with progressive options.

Signos, a five-year-old startup, is taking an method that does not contain capsules.

The firm is utilizing off-the-shelf steady glucose screens, or CGMs, and offering real-time weight loss plan and train suggestions primarily based on a person’s readings. CGMs are small sensors worn on the higher arm that observe glucose ranges, primarily for folks with diabetes. The data is wirelessly despatched to a smartphone, permitting the person to higher stop emergencies.

Signos makes use of CGMs constructed by Dexcom. The startup has its personal app that reveals customers how their physique responds to particular meals, what causes their glucose to spike and when they need to train to get the most effective outcomes for weight loss.

On Tuesday, Signos stated it closed a $20 million funding spherical led by Cheyenne Ventures and GV, previously referred to as Google Ventures. Dexcom Ventures additionally contributed to the financing. Signos stated it’ll use the contemporary capital to proceed its analysis into metabolic well being and to increase its staff, which is presently round 45 folks.

“Whether you have got 5 kilos to lose or 100, we would like to ensure we’re ready to assist everyone,” Sharam Fouladgar-Mercer, Signos’ co-founder and CEO, instructed CNBC in an interview. 

Customers who join Signos can choose a one-month, three-month or six-month plan. With the half-year plan, customers pay $143 a month, which incorporates the entire expensive CGMs they will want throughout that point. The firm declined to share particular particulars about how many individuals are presently utilizing its platform.

Fouladgar-Mercer stated the lengthy timelines are designed to appeal to customers who’re severe about their weight-loss journey. Additionally, the sensors themselves have an extended put on time. The Dexcom G6 and G7, the newest gadgets, can measure glucose for up to 10 days. Signos presently helps the G6 and will quickly work with the G7 as properly.

Fouladgar-Mercer stated Signos is utilizing Dexcom’s CGMs as a part of a scientific examine permitted by an institutional review board designated by the U.S. Food and Drug Administration to monitor biomedical analysis involving actual folks. 

Fouladgar-Mercer stated he created the corporate in 2018 partly due to his personal battle to handle weight all through his life. He educated as an athlete and performed hockey in school, however he stated he seen how meals typically affected him in a different way from the best way it affected his teammates.

He stated he at all times felt that, in an effort to perceive a person’s metabolism, there was a “vital part” lacking, and it had been nagging at him for 30 years.

Signos helps customers perceive the correct choice to make within the second, however they’ll go “behind the scenes” and be taught as a lot concerning the science as they’d like, Fouladgar-Mercer stated. Users also can combine sleep data, coronary heart fee data, and train data from their Apple Watch to personalize their profile much more. 

“Once they belief the system works and they perceive the methodology, they’ll just comply with the actually fast, this is what I do, this is what I do, this is what I do,” Fouladgar-Mercer stated. “And that is the way you get behavioral change.”

Though Dexcom primarily develops its CGMs for sufferers with diabetes, the corporate can be working towards broader applications. For occasion, subsequent 12 months it is releasing a brand new product meant for individuals who aren’t taking insulin. Similarly, Abbott Laboratories, which dominates the worldwide CGM market, is hoping to deliver its first consumer-facing CGM, called Lingo, to the U.S. subsequent 12 months, including customized teaching with suggestions about weight loss plan, sleep and train.

Fouladgar-Mercer stated Signos has extra data factors than “anyone does on the earth for non-diabetics.” He added that because the firm constructed its first product nearly 5 years in the past, it has been ready to give attention to fine-tuning its know-how. 

“I do not need to incorrectly set expectations,” Fouladgar-Mercer stated. “I believe quite a lot of instances, it is like, ‘Oh, misplaced X kilos in X days.’ That’s not what we’re making an attempt to accomplish. It’s actually, how can we put you on a sustainable journey? And that journey will not be going to be finished in two or three days.”

Fouladgar-Mercer stated Signos can work properly alongside Ozempic and Wegovy from Novo Nordisk and different GLP-1 remedies. Novo Nordisk’s share worth has quadrupled since 2018, and the corporate is now essentially the most priceless in Europe.  

Fouladgar-Mercer stated GLP-1 medicine are a “highly effective software” that may assist folks jump-start weight loss, however it may be difficult to maintain weight off in the event that they cease taking the medicine. Platforms akin to Signos will help to reinforce and keep a more healthy life-style over time, he stated.

Ultimately, he stated, he desires folks to use Signos to find out how to make higher selections that work finest for his or her our bodies. 

Signos, Fouladgar-Mercer stated, can use know-how and data “to drive behavioral change, and then wrap that each one in a system that basically is concentrated on driving and fixing this greatest downside we now have in America, which is weight.”

WATCH: Novo Nordisk stops Ozempic trial early after signs of success



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