Health company's stock plummets 53% as SEC probes weight-loss division

A struggling health company has seen its share price collapse by over half this year. The decline comes as regulators probe its weight-loss division, once a major source of growth. Meanwhile, the firm has pushed ahead with a billion-dollar deal to enter new markets overseas.

The company's shares now trade at around $13.50, barely above their lowest point in the past year. Since January, the stock has lost nearly 53% of its value, reflecting investor concerns.

The U.S. Securities and Exchange Commission (SEC) has requested documents tied to the firm's public statements about its compounded semaglutide products. These weight-loss treatments have driven much of its recent expansion. The SEC's focus remains on whether disclosures to investors were accurate and complete.

Despite the regulatory pressure, the business confirmed a major acquisition last month. It will pay up to $1.15 billion for Eucalyptus, a digital health platform. The deal aims to extend its reach into Germany, the UK, Australia, and Japan.

Financial projections for early 2026 also disappointed analysts. The company expects first-quarter revenue between $600–625 million, well below the $654 million forecast by market experts.

The SEC's investigation adds to the company's challenges as it faces weak share performance and lower-than-expected sales. Its expansion into international markets through the Eucalyptus purchase may now play a critical role in stabilising future growth. The outcome of the regulatory review could further shape investor confidence in the months ahead.