Weight Loss Drugs Like Wegovy Would Not Impact Business - Healthcare Companies Tell Investors

Novo Nordisk A/S NVO investors and analysts eagerly await the company's third-quarter results, hoping for clarity on when supply limitations for its weight-loss drug, Wegovy, in the U.S. will be resolved. 

Also, Healthcare firms that benefit from treating obese and overweight individuals are striving to persuade investors that revolutionary weight-loss medications won't diminish their profits.

The efficacy of Novo Nordisk's Wegovy and comparable drugs could propel the global obesity drug market to a staggering $100 billion within the next decade. 

Consequently, these projections have triggered a decline in the valuation of various companies, including those manufacturing bariatric surgery devices and products designed to address health complications arising from excess weight.

Nonetheless, Reuters noted that these companies and analysts highlight concerns about the expensive nature of weight-loss medications, uncertainty regarding their extended use, and the possible absence of insurance coverage, which could constrain their long-term market potential.

Citing Barclays analyst, the Reuters report emphasizes that the supply of Wegovy is currently the top concern for healthcare investors following Novo. 

In August, Novo indicated that these supply constraints could persist until 2024, and the FDA has not provided a clear timeline for normalization.

The looming presence of rival Eli Lilly And Co LLY, set to launch its Mounjaro weight-loss drug in the U.S., adds pressure.

Without a concrete date for the cessation of supply restrictions for Wegovy's "starter doses," it could negatively impact market sentiment. 

Price Action: NVO shares are down 2.36% at $92.95 during the premarket session on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.