Non-Obvious Winners from the Ozempic Craze
Analysts predict Ozempic and other weight loss drugs will have ripples across many industries.
By
July 20, 2024
J.P. Morgan forecasts the total GLP-1 users, a class of medications that can help manage Type 2 diabetes and obesity, in the U.S. may be around 30 million, or 9% of the U.S. population, by 2030.
The obvious winner is Novo Nordisk, the multinational pharmaceutical company behind popular weight loss drugs Ozempic and Wegovy. In 2023, Novo Nordisk generated nearly $14 billion from Ozempic sales and $4.5 billion from Wegovy sales. Novo Nordisk’s stock is up 30% year-to-date, more than double the S&P 500 return of around 13%.
Some of the other winners are less obvious:
- Energy drinks: One survey showed GLP-1 drug users are 72% more likely to consume an energy drink at least once per month compared to the general population
- Stretch mark creams: With weight loss drugs causing widespread weight loss, stretch marks are becoming more common; Stretch mark creams are expected to compound at a 7.7% CAGR through 2031, per Market Critics
- Airlines: United Airlines is expected to save $80 million/year if the average passenger weight falls by 10 pounds, per Bloomberg
The post-Ozempic world will have ripples across many industries.
