Why You Should Target Weight Loss Drug Stocks In The 2020S
Date
10/4/2023 10:10:50 AM
(MENAFN- Baystreet)
Why You Should Target weight loss Drug Stocks in the 2020s
Ozempic is the brand name of an antidiabetic medication that is used for the treatment of type 2 diabetes. However, it quickly gained popularity for its effectiveness in delivering hugely successful weight loss results. Soon after, it began to be marketed and sold as an anti-obesity drug around the world. In 2022, Novo Nordisk, the manufacturer of Ozempic, reported that the drug had recorded sales of US$8.56 billion. The company reported that it had seen a 23% sales jump in 2023 in late April.
Weight loss drugs, treatments, and programs have always been big business in North America and around the world. That has been exacerbated by the huge increase in obesity we have seen in the developed world over the past several decades. In the United States, the Centers for Disease Control and Prevention (CDC) stated that the prevalence of obesity stood at a stunning 41.9% in 2017. Over the past 20 years, obesity rates have climbed from 30% to nearly 42%. Meanwhile, the prevalence of severe obesity rose from 4.7% to 9.2% from 1999-2000 through to 2017-2020.
Morgan Stanley, one of the top financial institutions on the planet, recently release a report that projected the market for obesity drugs would reach US$77 billion by 2030. That was up from its previous estimate of US$54 billion. BMO Capital Markets analysts Evan David Seigerman also predicted that revenue for weight loss medications could reach as high as US$70 billion just in the United States alone.
Investors who are hungry for exposure to the weight loss drug market should keep a close eye on Eli Lilly (NYSE:LLY). This Indiana-based company discovers, develops, and markets human pharmaceuticals to an international consumer base. The company's own variation of Ozempic is tirzepatide, which has achieved incredible weight loss results in rigorous trials. Some analysts predict that this drug could deliver annual sales of US$50 billion.
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