There is an appetite without basis for news about weight loss drugs. We cannot hear enough about celebrities, politicians and tycoon – including Elon Musk, Boris Johnson, Sharon Osbourne and Oprah Winfrey – who have used Ozemmpic or Mounjaro.
In the UK, like that has become an increase in the absorption of GLP-1 drugs so that the sale of supermarkets has shrunk.
Sometimes this kind of scope can have a broader message for investors.
Public Figures’ Dependence on ‘Jabat Fat’ underlines the estimated that the global market for these products can grow from $ 30 billion at this time (£ 22.4 billion) to more than $ 150 billion at the end of this decade, because millions are looking for routes out of obesity.
So can you add weight to your portfolio by taking a piece of Eli Lilly, the Mounjaro US maker, which is now prescribed by GPS? Or should you choose Novo Nordisk, a Danish giant that produces the Blockbuster Oempic and Wegovy brands?
Opportunities can lie in the weaknesses of shares of this innovative business. Over the past year, Eli Lilly fell 13 percent and Novo Nordisk has fallen 53 percent.
Obesity Answer: The global market for these products can grow from $ 30 billion at the moment (£ 22.4 billion) to more than $ 150 billion at the end of this decade
Will James, manager of Guinness European Equity Income Fund, said: ‘Novo Nordisk has been in the eyes of the final storm and the fall of Rahmat is very impressive.’
The two companies struggled not only against each other, but also with a start-up rival against a tense political background in the US.
This is the largest market for weight loss drugs, but US Health Secretary Robert F Kennedy Jr. is not a fan. He wants to reduce the cost of all drugs. But he also believes that overeating is not the main cause of obesity. He said: “American children don’t suddenly become greedy and lazy -there is something poisoning them.”
Kennedy pointed his fingers to the food company. Although his statement may not have any basis, the company in this industry is already worried about the impact of fat puncture on eating habits.
The Kantar Consultant company said that lower supermarket sales coincided with increasing the absorption of GLP-1 maintenance. A year ago, 2.3 percent of British households had one member using GLP-1. Now standing at 4.1 percent.
Novo Nordisk
The bet on Novo Nordisk is a bet about the company’s comeback.
Almost exactly a year ago, shares – with prices in DKK, or Denmark Krone – were at the top of KR.1.208, against KR.441.
The pharmaceutical giant, which was founded by a century ago, was larger than the Danish economy, and had become what James explained as ‘flag carrier for European capabilities which was sometimes complicated to innovate’.
Today, Novo Nordisk looks more vulnerable than all conquests. In such a way that the Parvus Asset Management hedge activist has collected shares, perhaps to force the reshuffle.
Shot in the arm: there is a tasteless taste for news about weight loss drugs
Also urged changes is the largest shareholder, Novo Foundation. This follows the shifting in May from the executive chief Novo Nordisk Lars Fruergaard Jorgensen, only the fifth person holds this role in the company’s history.
His departure was driven by the rapid struggle for Eli Lilly’s market share in the US, where Mounjaro was the most prescribed drug. Novo Nordisk remains a global leader.
The problem began last year when Novo Nordisk could not meet the demand for her drugs, which caused a destructive surge in ‘compounding’.
Under this settings, pharmacies can mix the version of cheap imitaries: customers of the US online telehealth company, such as Hims & Hers Health, are proven to be more than interested in ‘Ozemic Dupes’.
This situation is exacerbated by poor performance in the trial of new weight loss cagrisema. But Novo Nordisk is trying to shift the perception of drugs with additional cardiovascular benefits.
Meanwhile, Amycretin, another new generation of drugs, seems to give results that are superior to Mounjaro. Amycretin is given as an injection once a week and a daily pill.
A few months ago there might be speculation that Novo Nordisk could turn into the equivalent of the Pharmacy MySpace-Social Media Leading Social Media that sank into obscurity when Facebook appeared. However, in recent weeks pessimism around the company has been reduced.
James said: “This is a high and high -quality business with an impressive track record of success and enhancing people’s lives.”
Stocks are in the AP/E ratio (guide to value) of revenue 17 times. At the peak of Hype Novo Nordisk, this is 40 times. This optimistic assessment is shared by the broker. In the last few days, Barclays, Deutsche, JP Morgan and UBS have repeated their ‘buy’ recommendations.
Eli Lilly
Eli Lilly may be famous for Moojaro, but pipes include cancer and diabetes drugs and products for Alzheimer’s disease and Crohn.
Founded in 1876, he also just took the therapeutic start-up verve that edited genes for $ 1.3 billion as a way to expand outside weight loss drugs, while utilizing his expertise in this field. If the approval will come, Eli Lilly plans to launch the Orforglipron, PIL once a day, next year.
This is a considerable progress for the closest business related to Prozac anxiety drugs, which are no longer produced.
The scope of Eli Lilly’s range clearly inspired trust, because 17 of 29 analysts followed the company value, shares bought with an average target price of $ 951, against $ 780 at this time.
Placing a sum of money to Eli Lilly and Novo Nordis reasonable if you diversify your portfolio this summer and want to invest in innovation.
However, both Novo Nordisk and Eli Lilly faced big competition, with around 150 rival products in development. Not all are guaranteed direct success. This week, for example, shares in US pharmaceutical companies AMGEN slipped 6 percent on the news that the injection of maritide weight loss was injected into vomiting.
Novo Nordisk is one of the top ten ownership at the Giant Fundsmith Fund. However, the portfolio no longer belongs to the Diageo drink group, in a broader shift triggered by the impact of weight loss drugs.
Companies such as Associated British Foods, McDonald’s, Mondelez, Nestle, Pepsico, Tate & Lyle and Unilever are aware of the need to adapt when consumers stay away from alcohol, candy, soft drinks and snacks.
They must form for a fat age-or face investor’s anger.
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