$80 BILLION Weight Loss industry enters ‘Age of Ozempic’, Shares of Novo Nordisk (NVO) rally
NordenBladet – In recent times, the popularity of Ozempic, Rybelsus, Wegovy, Mounjaro, and other weight-loss drugs has soared, causing a significant impact on the weight-loss industry. Big pharmaceutical companies are witnessing a gold rush with these drugs, which are being widely promoted in advertisements, awards shows, and headlines. The pharmaceutical alternatives have made it easier and more effective for people to achieve weight loss without the need for traditional methods like diets, exercise, and behavioral changes.
The $80 billion weight-loss industry, which includes well-known companies like WeightWatchers, Jenny Craig, Nutrisystem, and Noom, is facing a more complex landscape as customers turn to these new drugs. For decades, these weight-loss companies have thrived by promoting willpower and lifestyle changes, but the pharma-driven era is now posing a challenge to their traditional approaches.
WeightWatchers and Noom, recognizing the evolving science and changing consumer preferences, are adapting to the new trend. WeightWatchers’ CEO, Sima Sistani, acknowledged their willingness to learn and evolve by acquiring Sequence, a telehealth business that allows patients to receive virtual prescriptions for the weight-loss drugs. Similarly, Noom launched Noom Med, a telehealth platform with a similar purpose.
This transformation has the potential to revolutionize the dieting industry, with some experts even predicting the possible “demise of dieting.” As the pharmaceutical alternatives gain prominence, both WeightWatchers and Noom have faced financial challenges. The 40-year-old Jenny Craig has also experienced difficulties and recently closed down, selling its brand to Nutrisystem’s parent company.
The rise of weight-loss drugs like Ozempic is reshaping the weight-loss industry, presenting both challenges and opportunities for companies that have long relied on traditional methods. It’s not just a business story but also reflects cultural and societal shifts in how people approach weight loss.
NVO One Year Trading Chart: Shares of Novo Nordisk (NVO) are up nearly 120% since Wegovy debuted in June 2021. This makes it Europe’s second most valuable listed company after luxury brand LVMH. Danish drugmaker also ramps up production to meet growing demand in US (Yahoo Finance extract as of July 25, 2023)
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Semaglutide, sold under the brand names Ozempic, Wegovy and Rybelsus, is an antidiabetic medication used for the treatment of type 2 diabetes and an anti-obesity medication used for long-term weight management, developed by Novo Nordisk in 2012. It is a peptide similar to the hormone glucagon-like peptide-1 (GLP-1), modified with a side chain.
Semaglutide is a GLP-1 receptor agonist, meaning that it mimics the action of the human incretin GLP-1, thereby increasing insulin secretion and increasing blood sugar disposal and improving glycemic control. Side effects include nausea, vomiting, diarrhea, abdominal pain, and constipation.
In 2020, semaglutide was the 129th most commonly prescribed medication in the United States, with more than 4 million prescriptions.
Photo: Rybelsus tablets produced by the Danish pharmaceutical manufacturer Novo Nordisk (NordenBladet)
Source: NordenBladet.ee
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