DXCM - International Companies Drive Diabesity Innovation

2024-03-29 09:59:07 ET

Summary

• The diabetes and obesity markets are large and growing, with an estimated total long-term addressable market of $100 billion in the US alone.
• Denmark's Novo Nordisk and US-based Eli Lilly are leading pharmaceutical companies in the development of GLP-1-based treatments for diabetes and obesity.
• There is potential for global market expansion, as there are millions of people who are obese or at risk for diabetes but are not currently receiving treatment.
• We view diabesity as a dynamic market that will create opportunities across the health care sector and second derivative demand in other industries where international companies maintain leadership positions.

By Marshall Gordon, Elisa Mazen and Charine Park

Diabetes and Obesity Markets Large and Growing

Drugs based on GLP-1 are developing into a mega blockbuster market for the treatment of diabetes and obesity. Danish pharmaceutical maker Novo Nordisk ( NVO ) has been involved for decades in the treatment of diabetes and is pioneering the advanced pharmaceutical treatment of obesity. ClearBridge initially purchased Novo in 2001, well ahead of the first clinical trials for its type 2 diabetes treatment Ozempic. In the last decade, the company's ability to secure approval for multiple uses of its semaglutide line of therapeutics, which also includes Wegovy and Rybelsus, has created tremendous shareholder value and provided actionable insights into the global market for diabetes and obesity treatments....

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