Ro is taking bets on the weight loss industry with a $30 million prepaid order of diet pill Plenity. The New York-based company inked a deal with Plenity creator Gelesis in 2019 to offer the product as part of Ro’s virtual care services. 

Plenity, which was cleared by the FDA in 2019 as a Class II Medical Device, comes in the form of an ingestible capsule. While users can tap into Ro’s telemedicine to get a prescription for the product, Gelesis clarifies that the product is not a drug.

Users can take the capsules before meals with water in order to feel fuller. The product is targeted at individuals whose BMI falls between 25 and 40. 

During the beta launch, which began in October of 2020, the demand surpassed the supply, according to a Geleiss release. Ro is projecting that Plenity will have a 1,500% YoY revenue growth. 

“Gelesis and Ro set out on a shared mission to expand access to high-quality treatment for those patients seeking support in weight management goals – and we’ve done just that for tens of thousands of patients who receive Plenity through Ro’s platform,” Zachariah Reitano, cofounder and CEO of Ro, said in a statement.

“Today, we are thrilled to expand this partnership through additional supply of Plenity – guaranteeing the ability to help patients across the country with the treatment and the tools they need.”

WHY IT MATTERS 

Roughly 42.4% of the U.S. population is living with obesity, according to the CDC. The agency estimates that the annual medical cost of obesity in the country was $147 billion in 2008. 

However, it is important to note that, while the BMI is commonly used in healthcare, debates have sprung up within the medical community about whether or not the metric is helpful for determining the health of an individual. 

THE LARGER TREND 

Ro has been expanding its services and reach over the last several years. While the company got its start in men’s sexual health and wellbeing, its offerings have expanded to include allergy dermatology and women’s health products. 

It has been growing through new investments as well as acquisitions. In March, the company scored $500 million in investments, bringing its total valuation to $5 billion. In late 2020 the company announced its purchase of Workpath, an on-demand, in-home care service. The company turned its sights on the reproductive space with the purchase of Modern Fertility, a fertility-focused health company. 

But it hasn’t been all smooth sailing for the digital health company. In October a TechCrunch article reported employee morale is low and turnover is high at the company. The article, which included interviews from 10 current and former Ro employees, outlined the pressure to launch or acquire new products.

Reitano fired back at the article, stating that the employees interviewed for the article were only a small percentage of the Ro staff, and that the employee satisfaction surveys remained positive.