A new study was released over the weekend that will only add to the excitement surrounding the potential of GLP1 weight loss medications.
The rise of GLP1s, which were first used to treat type-2 diabetes, as an effective weight-loss treatment has stirred excitement in the investment community. Most readers are likely familiar with Ozempic, Novo Nordisk’s immensely successful GLP1, which was eventually sought after for its ability to deliver impressive weight loss results. Novo Nordisk has now expanded to offer Wegovy, which targets weight loss as an end rather than as a side-effect to the treatment of diabetes.
Naturally, competitors to Novo Nordisk’s hugely successful GLP1s have emerged. Eli Lilly (NYSE:LLY) is likely the most well-known of these rivals. Last week, Eli Lilly’s Wegovy equivalent Zepbound received approval from the United States Food and Drug Administration (FDA). Eli Lilly is well-positioned to be a heavy hitter in the U.S. market in the years ahead.
The potential of these drugs cannot be understated. Goldman Sachs recently projected that, by 2030, the global market for anti-obesity medications (AOMs) could grow more than 16 times to $100 billion. Weight loss as an aesthetic pursuit is just the tip of the iceberg for this market. Indeed, the successful combating of obesity in North American around the world has massively positive health potential.
Researchers at the American Heart Association Scientific Sessions recently published the results of a study on Novo Nordisk’s Wegovy. The 17,500-person select study found that weekly injections of Wegovy reduced the overall risk of heart attack, stroke, and death from cardiovascular complications by 20%. Those findings could expand the insurance coverage of Wegovy, contributing further to its potential. Investors should be very excited.
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