Slimming Down Your Waistline and Boosting Your Portfolio: The Transformative Power of Obesity Drugs
“Lose weight fast”. For decades, that was the slogan behind all sorts of weight loss products: shakes, meal substitutes, pills, you name it. Despite the hope these products offered, their use led to zero or barely noticeable results. However, there was a recent shift in the slimming-down landscape when new drugs, like Ozempic, appeared and revolutionized the weight loss industry through their fast and substantial effects.
What we know about obesity
For some, the quest to lose weight seems like a trivial pursuit. Others view obesity as the result of an unwillingness to follow proper diet and exercise. Yet, the World Health Organization (WHO) recognizes obesity as an “issue of epidemic proportions” and since June 2013, the American Medical Association (AMA) has recognized obesity as a disease state requiring treatment and prevention efforts[1]. In 2021, the WHO estimated that this disease caused at least 2.8 million deaths each year. Considering these statistics and the recognition of obesity as a complex and multifaceted health challenge, the quest for weight management extends beyond lifestyle choices.
Obesity is caused by abnormal metabolic changes that promote weight gain while making losing weight more challenging. Additionally, genetic, behavioral, and psychological factors can impact our relationship with food. First, research has shown that several genes may increase hunger and food intake[2], indicating that some people, more so than others, have a predisposition to become overweight or obese. Second, many of us now live in cities where jobs are typically less physically demanding and access to high-caloric food is easier, a dreadful combination to put on the pounds. Finally, eating disorders such as binge eating syndrome and night eating syndrome can increase obesity risk. Therefore, while it may seem like an easy problem at first, the overwhelming data points to the complicated nature of obesity and the many challenges overweight people face.
After years of research, it is now clear that obesity presents a substantial risk for various complex illnesses, including diabetes, heart disease, cancer, and mobility issues. Individuals with these health concerns encounter significant challenges and rarely achieve complete recovery. Additionally, the medical requirements of these patients impose a notable burden on health systems. However, it is crucial to consider not only the scientific aspects of obesity but also the sociological aspects that accompany the disease. The stigma that individuals face due to their body weight can intensify mental health issues and pose further obstacles to those attempting to lead healthier lifestyles. Finding a middle ground between recognizing the potential health hazards and cultivating a supportive and understanding environment is crucial for the successful management of obesity and public health campaigns.
The Science Behind the Development of Obesity Medications
The history of anti-obesity drugs shows us a range of efforts focused on developing weight management medications. In the 1930s, amphetamines were among the first drugs for weight loss via appetite suppression but declined due to potential abuse and side effects such as hypertension and insomnia. Then, in the 1950s, thyroid hormones were all the rage due to increasing metabolic rate and promoting weight loss but were banned shortly after due to cardiovascular risks. Fast-forward to the 1980s and 90s when Fen-Phen, a combination of fenfluramine and phentermine, was an effective appetite suppressant but was then associated with serious heart and lung problems. More recently in the 2000s and 2010s, other drugs like Rimonabant and Lorcaserin gained popularity due to their ability to block brain receptors successfully suppressing appetite but were withdrawn from the market due to their link to anxiety, depression, and an increased risk of cancer. Currently, the drug Orlistat works by reducing the absorption of fats in the body and remains one of the few anti-obesity drugs still in use today and it is sold under various brand names across the world.
In 2014, the fight against obesity took a significant turn with the emergence of a new generation of anti-obesity drugs. A new set of players entered the weight loss drug scene: GLP-1 Receptor Agonists. This group of drugs was originally developed to help control blood sugar levels in people with type 2 diabetes and they work by mimicking a hormone called Glucagon-Like Peptide-1 (hence the GLP-1 acronym). This hormone has a few important jobs in our body: it reduces our appetite and feelings of hunger, slows down the release of food from our stomach, and makes us feel full after eating. This combination of effects leads to weight loss. We can think of GLP-1 drugs as ways of triggering the sensors in our brain that signal to us that we are full and should stop eating; or in other words, appetite suppressors.
Interestingly, the weight loss activity of these drugs came as a surprise. Further clinical trials were needed to show that the extent of weight loss achieved by the drugs, including Saxenda, Ozempic, Wegovy, and Mounjaro, have proven to be very effective, with patients experiencing weight loss ranging from 10% to 22% in their first year of use. In comparison, patients who undergo the more invasive approach of bariatric surgery can lose up to 35% of their weight. Despite the benefits of a non-surgical intervention, people taking GLP-1 drugs can experience side effects like nausea, constipation, headaches, and in rare cases, pancreatitis and stomach paralysis. Consequently, some have had to stop taking the medication due to presenting intolerable adverse reactions to these medications.
Investing in Companies Behind Obesity Medications: Risks and Rewards
Massive investments have poured towards finding the panacea for weight loss. The reason? Obesity is a multi-billion-dollar industry. The pharmaceutical companies behind GLP-1 drugs have seen their stocks soar in the past years, in large part due to the overwhelming success of their obesity medications. Novo Nordisk (NVO), the maker of Saxenda, Ozempic, and Wegovy, alongside Eli Lilly (LLY)’s Mounjaro, are at the forefront of obesity drugs.
Investing in these companies presents both risks and rewards, as the market for obesity treatments continues to grow. Novo Nordisk and Eli Lilly hold a unique position in the space because other pharmaceutical companies lack GLP-1 drugs. Unsurprisingly, other players, such as Pfizer, are racing to develop their own compounds.
Another important consideration is the influence of GLP-1 drugs on the other medications in these companies’ portfolios. For instance, both Novo Nordisk and Eli Lilly manufacture and sell insulin and drugs for type 2 diabetes. With the potential decrease in obesity, the need for these medications will go down, impacting their overall earnings. Despite the risks, both companies are betting on scaling the production of and improving GLP-1 drugs to meet demand — for instance, new iterations could aim at maintaining muscle mass while promoting fat loss, which is currently not the case for the GLP-1 drugs and is a matter of concern for some experts. Finally, before investing in these companies, we need to remember that as more people use these drugs, the real-life scale of their side effects will become more apparent. For instance, class action Lawsuits against the makers of Ozempic are already on the way and might impact the performance of the drugs.
Impact of Decreased Obesity on Other Health Markers: A Ripple Effect
The decrease in obesity rates, facilitated by the effectiveness of GLP-1 medications, has the potential to impact other health markets. A reduction in obesity could lead to a decrease in the prevalence of associated health issues, such as heart disease, diabetes, and the need for related surgeries and medications. Additionally, it is expected that as people slim down, their eating habits and food consumption patterns will change, influencing the food industry.
One thing is true, in the past decade we have witnessed the tremendous impact of scientific research on the development of GLP-1 drugs that come as a needed resource to combat the obesity epidemic. Moreover, we will see, over the next years, how the introduction of these drugs to the market will transform the lives of individuals and will reshape many industry sectors.
References
[1] https://www.sciencedirect.com/science/article/abs/pii/S0889852916300354
Author: Ema Flores Díaz
This story was originally published on Pubweave.
