Medifast

Medifast, Inc. (NYSE: MED) is an American nutrition and weight loss company based in Baltimore, Maryland. Medifast produces, distributes, and sells weight loss and health-related products through websites, multi-level marketing, telemarketing, and franchised weight loss clinics.

Medifast, Inc.
Public
Traded asNYSE: MED
S&P 600 Component
IndustryWeight loss, multi-level marketing
Founded1980
Headquarters
Baltimore, Maryland
,
United States
Key people
Daniel R. Chard, CEO
ProductsMedifast diet
Revenue US$ 714 million (2019)[1][2]
US$ 91 million (2019) [1][2]
US$ 77.9 million (2019) [1][2]
Total assets US$ 195 million (2019) [1][2]
Total equity US$ 105 million (2019) [1][2]
Number of employees
550 (2019)[2]
Websitemedifast1.com

Subsidiaries

The company owns five subsidiaries:

  • Jason Pharmaceuticals, Inc.
  • Take Shape for Life, Inc. (TSFL) (renamed Optavia from July 2017)[3]
  • Jason Enterprises, Inc.
  • Jason Properties, LLC
  • Seven Crondall, LLC

History

Medifast was founded in 1980 by William Vitale, a medical doctor. His products were sold directly to other doctors, who in turn prescribed them to their patients.[4]

The company is publicly traded on the New York Stock Exchange (symbol: MED).[5]

On July 17, 1995, HealthRite (predecessor of Medifast) changed its name from Vitamin Specialties Corp.

In 2001, the company changed its name to Medifast, Inc. In 2002, Retired Marine Colonel Bradley T. MacDonald and Chairman of the Board at the time, along with clinical specialist Dr. Wayne Scott Andersen created Take Shape For Life as a personal Coach to Client system and the company’s “Habits of Health System.” [6]

In October 2010, Medifast was ranked number 1 on Forbes magazine's list of "America's 100 Best Small Companies".[7] The company was ranked 18th as of the 2014 list.[8]

Medifast was named one of Forbes 100 Most Trustworthy Companies in America in 2016 and 2017.[9]

In July 2017, Medifast changed the name of its subsidiary Take Shape For Life to OPTAVIA and introduced a new line of products, OPTAVIA Essentials, directly sold from Coaches to clients.[10]

On December 31, 2017, OPTAVIA revenue resulted in the ninth consecutive quarter of growth with a total number of 16,700 active earning OPTAVIA Coaches.[11]

In October 2017, Medifast relocated its headquarters to Baltimore from Owings Mills, Maryland.[12]

In February 2018, Medifast announced the company’s extension of its comprehensive healthy living programs and products into Hong Kong and Singapore in the first half of 2019 with its lifestyle brand, OPTAVIA.[13]

The company is public with a market capitalization of $1.4 billion, as of May 2018.[8]

False advertising settlement

In September 2012, Medifast's subsidiary, Jason Pharmaceuticals, paid a $3.7 million USD civil penalty for false advertising. The Federal Trade Commission and United States Department of Justice said that advertisements for the "Medifast 5 & 1 Plan" low-calorie diet told consumers they could "lose up to 2-5 pounds per week", and that these weight-loss claims lacked a reasonable scientific basis, and were unsubstantiated. Under the settlement, any future claims made by the company must be backed by at least one human clinical study.[14][15]

References
  1. "Medifast, Inc. Financials".
  2. Medifast (11 June 2020). "2019 10-K Report". Securities and Exchange Commission.
  3. Lorraine Mirabella (February 20, 2017), "Medifast's Take Shape For Life changes name to Optavia" http://www.baltimoresun.com/business/bs-bz-medifast-rebrand-20170220-story.html, retrieved March 12, 2018
  4. Medifast History Archived 2010-11-27 at the Wayback Machine
  5. "Medifast Inc". MarketWatch. Retrieved 2019-03-22.
  6. "Carrying out the legacy of Medifast's turnaround CEO".
  7. Forbes America's 100 Best Small Companies
  8. "Medifast on the Forbes America's Best Small Companies List". Forbes. Retrieved July 16, 2015.
  9. "Medifast earns spot on Forbes' 100 Most Trustworthy Companies list".
  10. "Medifast's Take Shape For Life changes name to Optavia".
  11. "Medifast, OPTAVIA See Record Growth in 2017".
  12. "Medifast relocating headquarters to Harbor East from Baltimore County".
  13. "Medifast's entry into Asia is first step in aggressive international expansion". (fee required).CS1 maint: others (link)
  14. David Ingram (September 7, 2012). "Medifast unit settles false ad claims for $3.7 million". Reuters. Retrieved 2012-09-09.
  15. Lewis, Truman (September 10, 2012). "Medifast Subsidiary Agrees to $3.7 Million Penalty". ConsumerAffairs.com. Retrieved July 16, 2015.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.