Medifast Explained

Medifast, Inc.
Type:Public
Industry:Weight loss, multi-level marketing
Foundation:1981[1]
Location City:Baltimore, Maryland
Key People:Daniel R. Chard, Executive Chairman and CEO[2]
Products:Optavia
Medifast diet (retired 2021)[3]
Revenue: US$ 934.8 million (2020), US$1,526,087 (2021), US$1,598,577 (2022) [4] [5]
Operating Income: US$ 134.2 million (2020)
Net Income: US$ 102.9 million (2020)
Assets: US$ 276.1 million (2020)
Equity: US$ 157.2 million (2020)
Num Employees:713 (2020)
Location Country:United States

Medifast, Inc. 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.

Subsidiaries

The company owns five subsidiaries:

History

William Vitale, a medical doctor, founded Medifast in 1980. He sold his products directly to other doctors, who in turn prescribed them to their patients[7] alongside behavioural counselling techniques.[8]

The company is publicly traded on the New York Stock Exchange (symbol: MED).[9]

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

In 2000 the company pivoted to a direct-to-consumer marketing program with the help of Jason Pharmaceuticals and in 2001, the company changed its name to Medifast, Inc. In 2002, Retired Marine Colonel Bradley T. MacDonald 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 the Client system and the company's “Habits of Health System.”[10]

In October 2010, Medifast was ranked number 1 on Forbes magazine's list of "America's 100 Best Small Companies".[11] The company was ranked 18th on the 2014 list.[12]

Medifast was named one of Forbes's 100 Most Trustworthy Companies in America in 2016 and 2017.[13]

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.[14]

In October 2017, Medifast relocated its headquarters to Baltimore from Owings Mills, Maryland.[15] The company is public with a market capitalization of $2.106 billion, as of June 2022.[2]

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.[16] [17]

Notes and References

  1. Web site: Medifast (MED) . . 29 June 2022 . . 29 June 2022 . 30 June 2022 . https://web.archive.org/web/20220630062835/https://www.forbes.com/companies/medifast/?sh=1b1ad098638f . live .
  2. Web site: Medifast, Inc. (MED) . . 29 June 2022 . Yahoo Finance . . 29 June 2022 . 22 October 2022 . https://web.archive.org/web/20221022023948/https://finance.yahoo.com/quote/MED/profile . live .
  3. Web site: Form 10-Q Quarterly Report to SEC . Medifast, Inc. . 4 May 2021 . SEC.gov . . 29 June 2022 . 30 June 2022 . https://web.archive.org/web/20220630063153/https://www.sec.gov/ix?doc=/Archives/edgar/data/0000910329/000155837021005715/med-20210331x10q.htm . live .
  4. Web site: Medifast, Inc. Financials. 2019-08-16. 2020-06-02. https://web.archive.org/web/20200602005330/https://finance.yahoo.com/quote/MED/financials?p=MED. live.
  5. Medifast . 2020 10-K Report . Securities and Exchange Commission . 6 September 2021.
  6. 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
  7. http://www.medifast1.com/sciencebehindmedifast/index.aspx Medifast History
  8. Book: Lifestyle medicine : a manual for clinical practice . 2016 . Jeffrey I. Mechanick, Robert F. Kushner . 978-3-319-24687-1 . Cham . 945375776.
  9. Web site: Medifast Inc.. MarketWatch. 2019-03-22. 2019-03-22. https://web.archive.org/web/20190322150522/https://www.marketwatch.com/investing/stock/med. live.
  10. Web site: Carrying out the legacy of Medifast's turnaround CEO . 2018-08-02 . 2018-08-02 . https://web.archive.org/web/20180802223542/http://smartceo.com/carrying-legacy-medifasts-turnaround-ceo/ . live .
  11. Web site: Forbes America's 100 Best Small Companies . 2017-09-04 . 2016-12-31 . https://web.archive.org/web/20161231214227/http://www.forbes.com/lists/2010/23/best-small-companies-10_rank.html . live .
  12. Web site: Medifast on the Forbes America's Best Small Companies List. Forbes. July 16, 2015. July 8, 2015. https://web.archive.org/web/20150708132232/http://www.forbes.com/companies/medifast/. live.
  13. Web site: Medifast earns spot on Forbes' 100 Most Trustworthy Companies list . May 2017 . 2018-08-02 . 2018-08-03 . https://web.archive.org/web/20180803014007/https://thedailyrecord.com/2017/05/01/medifast-earns-spot-on-forbes-100-most-trustworthy-companies-list/ . live .
  14. Web site: Medifast's Take Shape For Life changes name to Optavia . 20 February 2017 . 12 March 2018 . 13 March 2018 . https://web.archive.org/web/20180313093306/http://www.baltimoresun.com/business/bs-bz-medifast-rebrand-20170220-story.html . live .
  15. Web site: Medifast relocating headquarters to Harbor East from Baltimore County . 18 September 2017 . 2 August 2018 . 3 August 2018 . https://web.archive.org/web/20180803014027/http://www.baltimoresun.com/business/bs-bz-medifast-headquarters-20170918-story.html . live .
  16. Web site: Medifast unit settles false ad claims for $3.7 million . David Ingram . . September 7, 2012 . 2012-09-09 . 2016-03-13 . https://web.archive.org/web/20160313045034/http://www.reuters.com/article/us-usa-medifast-settlement-idUSBRE8860X720120907 . live .
  17. News: Lewis. Truman. Medifast Subsidiary Agrees to $3.7 Million Penalty. July 16, 2015. ConsumerAffairs.com. September 10, 2012. July 16, 2015. https://web.archive.org/web/20150716124839/http://www.consumeraffairs.com/news04/2012/09/medifast-subsidiary-agrees-to-37-million-penalty.html. live.

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