Investment bank forecast: The global weight loss drug market is expected to reach billions of dollars by 2035.
According to analysts at the Montreal Bank of Canada, the global market for new weight loss drugs is expected to reach $100 billion by 2035, with potential revenues of $70 billion in the US market.
In 2023, besides AI, the hottest investment track is undoubtedly GLP-1. This type of emerging weight-loss drug is highly sought after in the market, even surpassing luxury handbags. LVMH, the top European stock market value, has already been surpassed by the weight-loss drug developer Novo Nordisk at the beginning of the month.
Evan David Seigerman, an analyst at the Bank of Montreal in Canada, believes that the global market for new types of weight-loss drugs is expected to reach $100 billion by 2035, and in the United States alone, the revenue from these drugs could reach $70 billion.
In addition to Novo Nordisk, another major GLP-1 pharmaceutical company, Eli Lilly, has also performed exceptionally well this year. Its cumulative increase has exceeded 50%, making it the best-performing pharmaceutical stock among the S&P 500 constituents this year.
Seigerman believes that Eli Lilly is most likely to dominate the US market in the 2030s.
Eli Lilly's obesity version of Mounjaro may be approved by the FDA by the end of this year, becoming the mainstay of weight-loss treatment in the US market for this decade.
Seigerman wrote:
With the combined impact of proactive policy-making, progressive regulation, and cultural attitudes, the United States is moving towards a future of popularizing the diagnosis and treatment of obesity. This transformation is built on data-driven insights and a vision dedicated to effectively addressing obesity.
A recent study on Novo Nordisk's Wegovy also showed that besides weight loss, the drug may further expand its audience by reducing the risk of heart attacks and strokes.
Morgan Stanley, another major Wall Street bank, is also optimistic about the weight-loss drug market. The bank's analysts predicted in August that the global obesity market will reach $77 billion by 2030, higher than the bank's previous estimate of $54 billion.