Eucalyptus Sees Surge in Weight Loss Drug Sales

Eucalyptus, a telehealth start-up backed by Woolworths, has generated around $200 million in revenue over the past 18 months, fuelled by demand for weight-loss drugs like Wegovy. As it expands, the company is also reviving its men’s longevity service in the UK, but regulatory challenges remain a key hurdle.

Founded in 2019, Eucalyptus has grown into the country’s leading online provider of weight-loss medications. Investors, including Woolworths’ venture capital arm and Blackbird Ventures, have contributed approximately $150 million, valuing the business at $560 million.

Revenue from its brands Juniper, Pilot, Kin, and Software surged 55% last financial year to $120.9 million, up from $78 million the year before. Cost-cutting in late 2023 helped reduce after-tax losses from $37.9 million to $15.2 million, while UK operations also saw growth.

A more reliable supply of medications from manufacturers like Novo Nordisk and Eli Lilly has helped boost sales. However, global shortages of GLP-1 drugs such as Ozempic have disrupted the industry, forcing Eucalyptus to limit new memberships in the UK for months to prioritise existing patients.

Looking ahead, Eucalyptus plans to relaunch its men’s longevity service, Compound, in the UK at a lower monthly price. Meanwhile, the company has joined calls to have weight-loss drugs listed on Australia’s Pharmaceutical Benefits Scheme, aiming to make treatments more accessible to a wider population.

Source: Australian Financial Review, Capital Brief, AICD