Want To Lose 10 Pounds? 'Miracle' Weight Loss Drugs Create Winners And Losers

Ozempic, Wegovy and Mounjaro could very well have become the most sought-after weight-loss drugs of the past two years, as press reports and social media amplification help push these new medications as a new "miracle treatment" for weight management.

A February analysis by Jefferies puts sales of GLP-1 drugs for obesity above $100 billion by 2031. 

But for the time being, most of these drugs continue to officially address the diabetes market, which could cause problems for the patients who need them the most.

Read Also: Goldman Sachs Thesis On Weight Watchers Is ‘Absurd,’ Fund Manager Says Why He’d Short The Stock

GLP-1 Drugs In A Nutshell

Ozempic, Wegovy and Rybelsus are all different brand names of the drug semaglutide, which was first approved by the FDA for the treatment of type 2 diabetes in 2019.

For diabetics, semaglutide works by mimicking the effect of GLP-1, a hormone naturally lacking in the body of patients with type 2 diabetes, which is the most normal kind of diabetes.

As GLP-1 drugs become more popular for those seeking to lose weight, patients struggling with type 2 diabetes have reported shortages of the drug that are preventing them from receiving treatment, as per a CNBC report.

By binding to the same receptors as GLP-1 would, semaglutide and other drugs in the same category are able to slow digestion, preventing the liver from producing too much sugar and telling the pancreas to produce more insulin, which lowers blood sugar levels.

GLP-1 is released by the body in response to eating. That means that in high doses, drugs like semaglutide can signal the brain to stop being hungry, making it the perfect drug for weight management both in patients who desperately need it due to diagnosed obesity, as well as in those who are looking to control their weight for aesthetic reasons.

Ozempic, Mounjaro, Wegovy and Rybelsus: How Do They Differ?

Wegovy, an injectable version of semaglutide, is currently the only brand approved by the FDA for weight loss for adults, gaining approval in 2021.

To qualify for the drug, patients must be adults with obesity or overweight with at least one weight-related condition (such as high blood pressure, type 2 diabetes or high cholesterol). The drug must be prescribed in addition to a reduced-calorie diet and increased physical activity.

Yet through the use of off-label prescribing, doctors are able to prescribe brands of the drug officially approved for diabetes, such as Ozempic and Rybelsus.

Both Ozempic and Wegovy are injectable drugs produced by pharmaceutical company Novo Nordisk A/S NVO, which also produces Rybelsus, the same drug in a tablet version.

Trulicity, a brand name for dulaglutide (another GLP-1 drug), is produced by pharmaceutical company Eli Lilly And Co LLY and has been in the market since 2014. Dulaglutide is also approved as a GLP-1  diabetes drug, with similar effects as those of semaglutide, though with a less effective weight-loss action according to a 2021 study.

Eli Lilly also produces Mounjaro, a brand name for tirzepatide, which was approved last year for the treatment of type 2 diabetes. Tirzepatide has the same effect as semaglutide in mimicking GLP-1, but can also mimic another hormone called glucose-dependent insulinotropic polypeptide of GIP.

A phase 3 study on more than 1,800 human subjects, published in the New England Journal of Medicine, found that tirzepatide is more effective than semaglutide in weight loss, but, just like Ozempic, the drug is yet to be approved for that indication.

How Will GLP-1 Drugs Affect The Fitness Space?

Some patients suffering from obesity are also struggling to gain access to the drugs, as health insurers are still reluctant to cover costs for drugs aimed at losing weight, according to a report by Insider.

A treatment with GLP-1 drugs for weight management can cost up to $1,300 a month for patients whose insurance is not covering the drugs.

Patients with diagnosed obesity are struggling by the perceived market opportunity that these drugs have in the general weight-loss market. Companies in the fitness industry could be affected by the flow of GLP-1 drugs into the market, in one way or another.

Some companies, such as Weight Watchers, are already trying to capitalize on the popularity of these drugs, by building them into their business model. The weight loss platform, a subsidiary of WW International Inc WW, recently announced the purchase of Sequence, a telehealth company that connects patients with doctors who can prescribe GLP-1 weight-loss drugs.

Others that don't jump on the GLP-1 train could become negatively affected. Companies such as Planet Fitness Inc PLNT and Peloton Interactive Inc PTON, whose business model is focused on more traditional methods of weight loss, could see their market share affected if current and potential customers were to trade their exercise and diet routines for the intake of GLP-1 drugs.

Photo: i yunmai on Unsplash.