Zinger Key Points
- Ozempic and other weight-loss drugs may lead to lower medical device sales.
- Johnson and Johnson misses its medical device estimates due to downturn in weight-loss surgery.
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Ozempic, Novo Nordisk’s NVO diabetes drug, is now popular for weight loss. The rise of the drug could become a major headwind for other companies that provide weight-loss services such as liposuction and bariatric surgeries.
Some companies are already seeing the impact of widespread Ozempic use. Healthcare and consumer goods conglomerate Johnson & Johnson JNJ said its third-quarter medical device sales fell short of estimates due to a downturn in bariatric surgeries, according to Reuters.
Read Also: Weight Loss Drugs Wegovy, Ozempic Gain Traction With Millennials, High Earners: New Survey Results
But, some analysts believe more and more people using Ozempic will not lead to a decrease in medical device use. William Blair analyst Margaret Kaczor Andrew pointed out that medical innovations like statins reduced overall cardiovascular disease, but did not reduce the use of heart monitoring devices.
More On The Way: Other pharmaceutical companies such as Eli Lilly And Co LLY are preparing to release their own weight loss drugs to give Ozempic and Wegovy, a drug geared for weight loss that is also made by Novo Nordisk, some competition. Eli Lilly’s drug, Mounjaro, is also taken as a shot like Ozempic but does not have the same indications that Ozempic currently does, such as being approved to lower the risk of a heart attack or stroke.
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