Jenny Craig: Looks To Cash In On Xenical's Popularity
13 July 1999
Angling for more ground in the lucrative weight-loss
business, "dieting guru" Jenny Craig is eyeing the Internet and
Hoffman-LaRoche Inc.'s Xenical to shore up her company's bottom
line, the Wall Street Journal reports. As customers continue to
balk at the cost of Jenny's Cuisine, the full-course meals that
can run $75 a week, the company is testing its marketing savvy on
the Internet, where it hosts a Web site that hawks nutritional
supplements and offers advice "on everything from menopause to
osteoporosis as part of an effort to leverage the company into a
broader women's health concern." Even with the innovations, the
company's stock tumbled 53% in the third quarter ended March 31.
Two months later, Jenny Craig announced that it had agreed to
link its own Web site with www.Women.com, "a larger, more
elaborate Web portal."
Jenny Craig President Phil Voluck said that the company had
tried a number of different approaches, and reluctantly decided
to enter the "diet-drug craze that peaked in 1997." As profits
fell, "executives belatedly gave in and offered fen-phen as an
adjunct to the Jenny Craig regimen," only to have the
fenfluramine component yanked from the market several months
later. Although Jenny Craig "personally laments the position
miracle drugs have put her company in," the company is trying to
cash in on Xenical's popularity. Voluck said he has recently
contacted Hoffman-LaRoche "to try to persuade it to urge doctors
to prescribe the drug in combination with the Jenny Craig plan."
Voluck asserted that "all the aspects of the Jenny Craig program
fit the mold needed for Xenical to be truly successful." Hoffman-
LaRoche spokesperson Valerie Suga refused to confirm any such
talks (Biddle, 7/12).
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