Medifast, Inc. () is an American

nutrition Nutrition is the biochemistry, biochemical and physiology, physiological process by which an organism uses food and water to support its life. The intake of these substances provides organisms with nutrients (divided into Macronutrient, macro- ...

and

weight loss Weight loss, in the context of medicine, health, or physical fitness, refers to a reduction of the total body mass, by a mean loss of fluid, body fat (adipose tissue), or lean mass (namely bone mineral deposits, muscle, tendon, and other conn ...

company based in

Baltimore, Maryland Baltimore is the List of municipalities in Maryland, most populous city in the U.S. state of Maryland. With a population of 585,708 at the 2020 United States census, 2020 census and estimated at 568,271 in 2024, it is the List of United States ...

. Medifast produces, distributes, and sells weight loss and health-related products through websites,

multi-level marketing Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial and sometimes illegal marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salarie ...

telemarketing Telemarketing (sometimes known as inside sales, or telesales in the UK and Ireland) is a method of direct marketing in which a salesperson solicits prospective customers to buy products, subscriptions or services, either over the phone or throu ...

, and franchised weight loss clinics.

Subsidiaries

The company owns five subsidiaries: *Jason Pharmaceuticals, Inc. *Take Shape for Life, Inc. (TSFL) (renamed Optavia from July 2017) *Jason Enterprises, Inc. *Jason Properties, LLC *Seven Crondall, LLC

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 alongside behavioural counselling techniques. The company is publicly traded on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

(symbol: MED). 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.” In October 2010, Medifast was ranked number 1 on ''

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'' magazine's list of "America's 100 Best Small Companies". The company was ranked 18th on the 2014 list. Medifast was named one of Forbes's 100 Most Trustworthy Companies in America in 2016 and 2017. 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. In October 2017, Medifast relocated its headquarters to Baltimore from

Owings Mills Owings Mills is an unincorporated community and census-designated place in Baltimore County, Maryland, United States. It is a suburb of Baltimore. Per the 2020 census, the population was 35,674. Owings Mills is home to the northern terminus o ...

, Maryland. The company is public with a market capitalization of $2.106 billion, as of June 2022. In December 2023, Medifast announced a partnership with LifeMD, a provider of virtual healthcare services. Under the agreement, Medifast will use LifeMD's virtual platform to offer Medifast clients a clinically supported weight management program, including the option for prescription GLP-1 medications where clinically appropriate. In return, LifeMD will provide its patients with an independent Medifast Coach and additional lifestyle support services for weight management.

False advertising settlement

In September 2012, Medifast's subsidiary, Jason Pharmaceuticals, paid a $3.7 million

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civil penalty for

false advertising False advertising is the act of publishing, transmitting, distributing or otherwise publicly circulating an advertisement containing a false claim, or statement, made intentionally, or recklessly, to promote the sale of property, goods or servi ...

. The

Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...

and

United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...

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.

References

External links

* {{Authority control American companies established in 1980 Companies listed on the New York Stock Exchange Companies based in Baltimore Low-carbohydrate diets Multi-level marketing companies Weight loss companies Nutritional supplement companies of the United States