Medifast invests $20M to expand into weight-loss drug market

Medifast Inc. has invested $20 million in a virtual health care provider as the Harbor East company makes a push into the booming weight loss drug market amid a slowdown in revenue. The partnership will blend Medifast’s coaching and diet-based approach with LifeMD doctors who can prescribe weight loss drugs like Ozempic to Medifast customers. Medifast (NYSE: MED) is purchasing $10 million of LifeMD (Nasdaq: LMFD) stock and contributing $10 million to LifeMD to launch the collaboration and improve the telehealth platform. Medifast CEO Dan Chard will join the board of directors at New York-based LifeMD as part of the deal.