Weight Loss Pharmaceuticals: In the recent earnings season, the business world found itself engrossed in discussions about weight loss, with names like Wegovy, Ozempic, and Mounjaro dominating conversations. Analysts, armed with questions, probed healthcare and consumer companies about the potential effects of these drugs, collectively known as GLP-1 agonists, on their sales.
A channel analysis of earnings transcripts for the third quarter revealed a significant surge in mentions of “GLP-1” or related terms like “obesity” and “weight-loss medications.” These terms were referenced 256 times across 29 U.S. and European healthcare and consumer companies, more than double the mentions in the second quarter.
Investor interest in this class of medicines, which includes Eli Lilly‘s Zepbound and Novo Nordisk’s Wegovy, has been steadily growing. These drugs, effective in treating diabetes and aiding weight loss, have the potential to reduce the risk of stroke or heart attack, making them transformative for individuals globally.
The turning point came on October 4 when Walmart, the largest U.S. retailer, noted a slight pullback in food demand from customers using weight-loss treatments. This sparked a flurry of questions from analysts to various consumer companies, including major players like Hershey and Mondelez, with a specific focus on sellers of sugary foods.
Also Read: Wegovy Heart Surprise: Beyond Weight Loss, Unveiling Cardiovascular Marvels
While some consumer companies discussed factors such as a reduction in calorie consumption, analysts caution against making large extrapolations. Truist Securities even downgraded Krispy Kreme, citing concerns about the impact of weight-loss medicines on stocks in this sector. Novo Nordisk surpassed LVMH as Europe’s most valuable listed company in September, with its shares rising by 48% this year. Eli Lilly, with a stock increase of about 63%, became the world’s most valuable healthcare company.
Big pharma manufacturers faced questions about their obesity drug candidates, while health insurers focused on the pricing of these drugs. Eli Lilly, in particular, has seen benefits from Mounjaro, prescribed for diabetes, and its weight-loss counterpart, Zepbound, approved in the United States on November 8. On the other hand, medical device and dialysis service providers, which profit from treating fat patients, had to address concerns about these highly successful medications’ market impact. Medical device companies have sold down, with the iShares US Medical Devices ETF down 7% this year.
Investors are just beginning to grapple with the realization that these drugs could potentially become the most widely used in the pharmaceutical industry. Despite concerns about high prices, potential lack of insurance coverage, and uncertainty around long-term use, GLP-1 agonists are poised to reshape industries and become a pivotal force in healthcare. As one analyst aptly puts it, “I just think these are probably going to be the best-selling drug class of all time. But it is going to take a few years to develop.”
Our Reader’s Queries
What is the most effective weight loss drug?
GLP-1 agonists are the top-notch anti-obesity medications available today. They are safe for long-term use and have proven to be highly effective. Currently, only three GLP-1 drugs, namely liraglutide (Saxenda), semaglutide (Wegovy), and tirzepatide (Zepbound), are approved for weight loss. However, some other GLP-1 drugs may be prescribed off-label.
What drug has been approved for weight loss?
The FDA has given the green light to Zepbound (tirzepatide) injection for adults struggling with obesity or overweight conditions. This medication is designed to aid in chronic weight management for individuals with a body mass index of 30 kg/m2 or greater for obesity, or 27 kg/m2 or greater for overweight conditions, who also have at least one weight-related condition. This approval marks a significant step forward in the fight against obesity and its related health issues.
What is the weight loss drug $1000 a month?
Zepbound, a new weight loss medication, comes with a hefty price tag of over $1,000 per month. Unfortunately, most health insurance companies do not cover this cost. The good news is that experts like Low Wang are optimistic that as more drug makers enter the market, competition will increase and ultimately drive down the cost of these medications. For now, however, they remain quite expensive.
What is stronger than phentermine?
Semaglutide is a highly effective medication that surpasses Phentermine in potency. Unlike Phentermine, Semaglutide only needs to be taken once a week and can be injected into the stomach, arm, or thigh. To begin treatment, a monthly dose of 0.25mg is recommended.