The rise of weight loss drugs like Wegovy and Mounjaro by Novo Nordisk NVO is leading to new product developments across various sectors.
What Happened: Companies from food and beverage to fitness are adapting to the increased demand for these drugs, hoping to capitalize on shifting consumer habits, CNBC reported on Friday.
DSM Firmenich is exploring nutritional supplements to complement the effects of these weight loss drugs. CEO Dimitri de Vreeze told CNBC that this move is a natural progression for the industry.
"If you go to weight loss and you're successful, you move to the health, nutrition, lifestyle counter, because you basically want to continue what you have. There we come into play," de Vreeze told.
Swiss food giant Nestle has announced a new frozen food range aimed at users of GLP-1 drugs. CEO Mark Schneider emphasized that while weight loss drugs change consumer behaviors, nutritional needs remain constant.
Danone CEO Antoine de Saint-Affrique also sees GLP-1 drugs as complementary to their nutritional products, potentially increasing demand.
Analysts remain cautious about the long-term impact of these drugs. Barclays analysts suggest that while GLP-1 drugs could substitute certain food products, they might also increase demand for healthier options.
Pharmaceutical packaging companies and even airlines could benefit from the growing weight loss drug market. However, the full impact on various industries remains to be seen.
Why It Matters: The global market for weight-loss drugs is expected to reach a staggering $150 billion by the early 2030s, a significant increase from the previous forecast of $100 billion. This surge is attributed to the growing availability of weight-loss medications from Novo Nordisk and Eli Lilly and Co.
However, the surge also means the presence of counterfeit products in the market. Novo Nordisk recently filed lawsuits against 21 U.S. medical spas, wellness clinics, and pharmacies for selling products claiming to contain semaglutide, the key ingredient in its popular weight-loss drug, Wegovy. This brings the total number of lawsuits to 21 since June, with five sellers already barred from selling their disputed products.
Novo Nordisk is also facing a significant challenge in China, where local pharmaceutical companies are developing generic versions of its key diabetes and obesity drugs. The patent for the active ingredient in these drugs is set to expire in China in 2026. An adverse court ruling could lead to an earlier loss of patent protection for the drugs in China, making it the first major market to strip Novo Nordisk of its patent protection.
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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