Economic impact of GLP-1 Weight Loss Drugs

Potential winners and losers (Odd Lots podcast)

You’ve likely heard about Ozempic, Wegovy, and other ‘GLP-1 agonist’ weight loss drugs coming to market.

At a very basic level, they help patients decrease appetite, reduce blood sugar levels, and promote weight loss.

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In addition, they’ve shown early signs of reducing risk of cardiovascular disease.

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It’s a potentially revolutionary development with far-reaching implications.

On a recent Bloomberg Odd Lots episode, hosts Tracy Alloway and Joe Weisenthal interviewed an analyst to learn about these potential impacts on patients, the healthcare industry, the economy.. I highly recommend checking it out.

[Podcast links at end of this post]

I particularly enjoyed hearing the guest’s research about specific companies or industry sectors that will be affected. For example, will all-you-can-eat buffets benefit with some patrons now eating less or will demand for these buffets drop in general, right alongside the appetites of their former patrons?

Medifast

Produces weight loss-friendly snacks and meals, along with a network of weight loss coaches. Could current customers opt for new weight loss drugs and, with their reduced appetite, simply eat less of the foods they’d prefer to eat?

Teleflex

The Titan SGS is a medical device for performing laparoscopic sleeve gastrectomies, which removes a portion of the stomach. It’s a common bariatric procedure that could face competition now - will patients opt for a surgery or weight loss drug injections?

Resmed

Obstructive sleep apnea (OSA) is very commonly linked to excess weight.

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• Excess fat around the abdomen can compress a person’s chest wall, decreasing lung volume and thus airflow

• A 10% weight gain is associated with a six-fold increase in OSA

Weight loss isn’t a clear cut “cure” for OSA, but it is likely to reduce demand for Resmed’s CPAP machines.

Match.com / Bumble

Weight loss drugs could bring increased demand to dating platforms, as patients experience improved health and, likely, a related increase in self-confidence.

Match.com owns a portfolio of these dating platforms (Match.com, Tinder, OkCupid, etc), whereas Bumble caters to women (“Make the first move”), which the Odd Lots guest suggests could see more of an impact.

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Podcast links for Apple Podcast and Spotify below:

1. https://www.healthline.com/health/weight-loss/glp1-for-weight-loss#how-they-work

2. https://www.reuters.com/business/healthcare-pharmaceuticals/obesity-drug-brings-heart-health-benefit-alongside-weight-loss-study-2023-05-19/

3. https://www.sleepfoundation.org/sleep-apnea/weight-loss-and-sleep-apnea