Recent data from the Centers for Disease Control and Prevention (CDC) underscores a dramatic shift in obesity trends across the US over the past decade.
The 2023 figures highlight a persistent and widespread obesity crisis, bolstering the market for weight loss drugs, where Eli Lilly and Novo Nordisk are currently the leading players.
Key findings from the CDC data
The CDC’s latest report reveals that every US state now has at least 20% of its adult population classified as obese.
Notably, 23 states have an obesity prevalence exceeding 35%, indicating that one in three adults in these regions could benefit from weight loss treatments.
Obesity is often linked to factors beyond diet, and the CDC emphasizes the urgent need for advanced treatment options.
According to Karen Hacker of the CDC, this data underscores the critical demand for effective obesity prevention and treatment strategies.
In response to the growing need, Novo Nordisk and Eli Lilly have emerged as leaders in the weight loss drug market.
Novo Nordisk’s Wegovy, a GLP-1 receptor agonist, and Eli Lilly’s Zepbound have been particularly successful.
Both companies have seen substantial revenue increases over the past year due to the high demand for their weight loss solutions.
Novo Nordisk vs. Eli Lilly
Novo Nordisk is expanding its portfolio with amycretin, a new drug that combines two peptide hormones in a single molecule.
This innovative approach aims to enhance appetite regulation and hunger control, offering a potential alternative to Wegovy.
In response to the high demand and supply constraints, Eli Lilly is investing $1.8 billion to boost its production capabilities for weight loss, Alzheimer’s, and diabetes medications.
The company is focusing on expanding its Kinsale, Ireland facility, with an additional $800 million investment to increase its manufacturing capacity.
UBS now expects the weight loss drug market to grow at a compound annualized rate of 33% and hit $150 billion in sales by 2029 – up from the firm’s earlier forecast of about $125 billion.
The company has also achieved a major milestone by securing regulatory approval for its weight management drug, Mounjaro, in China.
Novo Nordisk has also got approval for its weight-loss drug from China.
Both Novo Nordisk and Eli Lilly are well-positioned to capitalize on the ongoing obesity trend.
Despite current short-term supply issues potentially impacting stock performance, the long-term outlook for these companies remains strong.
Their advancements and expansions in the weight loss sector suggest promising medium-term investment opportunities.
The post CDC data highlights surge in obesity rates, driving demand for weight loss drugs appeared first on Invezz
