CA - Waistlines And GLP1s - Expanding In Unison

2024-06-04 13:50:00 ET

Summary

• More than 800 million people are estimated to be overweight or obese worldwide, and the growing prevalence of obesity, despite the availability of various treatments, suggests that isn’t going to change.
• The potential $500 billion market for GLP-1s could represent half of the entire prescription drug market as it stands today.
• Only two companies, Eli Lilly and Novo Nordisk, have sizable GLP-1s available today, and we expect them to dominate the market over the intermediate term.

It seems like everyone is talking about Ozempic, but this popular weight loss drug is only one of many glucagon-like peptide-1 (GLP-1) medications establishing themselves as the cornerstone in the management of obesity. But how did the category evolve, and what are the opportunities and risks for investors?

The Evolution of GLP-1 Medications

The U.S. Food & Drug Administration (FDA) approved the first commercial GLP-1 medication for the treatment of type 2 diabetes in 2005. The core function of GLP-1 medications is managing hemoglobin A1c levels, crucial to long-term glucose control. Their efficacy surpasses that of many earlier generations of diabetes medications....

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