Among the largest companies, not only American big-tech are doing great... The market for anti-obesity drugs is currently experiencing a similar boom to technology companies in the field of Generative AI.
In fact, we are talking about a class of drugs called GLP-1 (glucagon-like peptide 1), which were originally developed for the treatment of diabetes, and which have recently been adapted to the treatment of obesity.
These are the already famous Wegovy (Novo Nordisk) and the recently introduced Zepbound (Eli Lilly).
The global branded obesity market increased by 116% in 2023 (and 193% in the USA). In 2023, Novo Nordisk increased sales of Wegovy by 407% (FDA approved Wegovy in 2021). Zepbound (from Eli Lilly) was approved for sale by the FDA on November 8, 2023.
How do Wegovy and Zepbound work?
“Wegovy works by mimicking a hormone called glucagon-like peptide-1 (GLP-1) that targets areas of the brain that regulate appetite and food intake.” - FDA press release, after the approval of Wegovy in June 2021.
“Zepbound activates receptors of hormones secreted from the intestine (glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP)) to reduce appetite and food intake.” - FDA press release, after the approval of Zepbound in November 2023.
Novo Nordisk is the largest European company with a capitalization of $426 billion, and Eli Lilly "is not yet the largest in the USA", however it still has a capitalization of $742 billion (this is more than Tesla from the Mag7 club).
Novo Nordisk is +19.9% this year and Eli Lilly +34.2%.
Figure 1 shows Mag7 (or Mag9) in 2024, and Figure 2 shows the European version of Mag4.
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