Teladoc Health recently announced a pharmacy integration agreement with Eli Lilly, which aims to enhance access to GLP-1 medications for obesity as part of their Comprehensive Weight Care Program. This initiative, along with the unveiling of new capabilities for its care delivery platform, Prism, marks significant progress in the company's service enhancement efforts. Despite these positive developments, Teladoc Health's share price experienced a decline of 1.16% over the past week. This movement coincided with broader market trends, as major U.S. indices, including the Dow and S&P 500, faced sharp declines amid economic concerns and tariff discussions, leading to their worst week in two years. The market's overall downturn of 2.7% may have overshadowed the company's encouraging announcements, affecting its share price performance.

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Over the last year, Teladoc Health's total shareholder return, including both share price changes and dividends, suffered a 38.83% decline. During this period, the company's performance significantly underperformed the broader US Healthcare Services industry, which saw just a 1.1% decline. Several factors have been influential in this downturn. Most prominently, Teladoc reported a substantial increase in its full-year 2024 net loss, rising from US$220.37 million to over US$1 billion, impacting investor confidence.

Beyond financial results, other events such as executive changes have also shaped the company's narrative. In May 2024, CEO Jason Gorevic's departure and the interim leadership transition likely contributed to investor uncertainty. Moreover, Teladoc faced a class action lawsuit in May 2024, concerning allegations of misleading statements, which may have further pressured its stock. Despite ongoing product innovation, such as the recent pharmacy integration with Eli Lilly, these challenges likely contributed to Teladoc's difficult year in the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:TDOC.

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