Are People Done Buying Chips And Soda? Stock Market Winners And Losers From Rise Of Ozempic, Weight-Loss Drugs

With health and wellness becoming increasingly popular in the United States, it’s no surprise that weight-loss drugs like Ozempic and Wegovy have gone viral on TikTok and other social platforms. Morgan Stanley MS outlined various industries that are set to be impacted by the public adoption of weight-loss drugs. 

Packaged Foods: Morgan Stanley says that Ozempic and other weight-loss drugs cause patients to significantly change their consumption patterns, and are most likely to cut out high-sugar and high-fat snacks. This could be bad news for companies like Nestle NSRGY, Mondelez International MDLZ, PepsiCo Inc PEP and more.

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The packaged-food industry is already low-growth, the Morgan Stanley analysts noted in the report. If Ozempic continues to grow in popularity, it could be detrimental to the share prices of many companies that are reliant on selling sugary snacks. 

Restaurants: Along with packaged foods, Ozempic users are likely to cut back on fast-food restaurant options. This creates an obvious headwind for companies like McDonald’s Corp MCD and Wendys Co WEN. But, as consumers shift away from certain restaurant choices, they might begin to frequent establishments like Chipotle Mexican Grill CMG or Cava Group Inc CAVA.

Apparel: It could be time for a "big short" on big and tall. Morgan Stanley says that weight-loss drugs will be a headwind for plus-size retailers, but could end up benefitting sportswear and casual attire companies like Nike Inc NKE. 

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