Viv to Close as Competition from Ozempic and Mounjaro Intensifies

The weight-loss firm Viv, co-founded by Irish entrepreneur Pat Phelan, has announced its decision to wind down operations following two unsuccessful acquisition attempts. The company, which was originally established as Limbo, cited an inability to compete with the extensive marketing resources of major pharmaceutical companies such as Novo Nordisk and Eli Lilly, producers of the popular weight-loss medications Ozempic and Mounjaro.

Viv, based in New York but conducting research in Cork, aimed to leverage artificial intelligence and blood glucose monitoring to assist clients in achieving their weight-loss goals. After spending three years developing its technology and researching market needs, the company initially found success. However, as competition intensified, the firm struggled to gain traction.

In a statement, the company reflected on its launch before the introduction of Ozempic and Mounjaro, asserting, “Even with the entrance to the market of the world’s largest pharmaceutical providers, the weight loss capabilities of Viv continued to outperform the drug-based solutions.” Nevertheless, Viv faced significant challenges due to the overwhelming marketing capabilities of these larger entities.

Over the past six months, Viv engaged in more than 50 meetings with top-tier investors, including venture capitalists, and navigated two failed acquisition processes with prominent companies in the continuous glucose monitoring (CGM) sector. The recurring feedback from potential investors highlighted the ease of use associated with pharmaceutical solutions.

In 2022, Viv successfully raised €6 million in funding, gaining support from high-profile backers including retired NBA star Shaquille O’Neal, former rugby player Jamie Heaslip, and Paddy Cosgrave, co-founder of the Web Summit. Despite continuous personal investment from the founders to maintain operations, the company’s last potential investor disengaged last week, marking the end of its viability.

“Besides the financial loss, it stings like hell that we couldn’t bring this to the masses, given that all the numbers work today perfectly,” the statement continued. The firm expressed disappointment over having to close, despite achieving operational success over the past year. “With losses mounting and no sign of a closing of an investment/acquisition, there has to be a finish point.”

Viv stated it is hopeful that one of the interested acquirers might purchase the business out of liquidation, allowing the project to continue with a stronger financial foundation.

Pat Phelan is also known for co-founding Sisu Clinic, a chain specializing in cosmetic procedures like Botox. Viv was Phelan’s fourth venture, following his earlier successes with Cubic Telecom, a mobile roaming business, and Trustev, a firm focused on e-commerce fraud prevention. The closure of Viv marks a significant shift in Phelan’s entrepreneurial journey, highlighting the challenges faced by smaller companies in a landscape dominated by larger players.