Weight loss pills are coming, and Wall Street is pretty stoked

Based on the results of two recently published studies, a series of effective weight loss pills developed by pharma giants like Novo Nordisk, Eli Lilly, and Pfizer could soon be available to the public.

And since a pill-version would solve some of the biggest obstacles in the way of existing obesity drugs like Ozempic reaching a mass-market, this bit of news has the folks on Wall Street more excited than a dog with the zoomies.

One such obstacle: price. Another? People’s fear of needles. Existing obesity drugs on the market like Ozempic cost upwards of $10,000/year, and most aren’t covered by insurance if used for weight loss. These drugs are also delivered via injection – a more costly (and anxiety-inducing) process than just taking a pill.

Hence, why drugmakers are focusing on developing a pill to treat obesity. A lower cost and easier delivery mechanism could broaden the market by making it easier for primary-care physicians to prescribe more widely.

• Wall Street analysts predict these new obesity drugs could exceed $100 billion in annual sales, which would represent one of the largest drug classes of all time.
• This investor-fueled hype is mainly driven by two things: a large addressable market + a product that needs to be used indefinitely. ~40% of the US is currently obese, and because these drugs mimic a hormone we produce to signal to our body that we’re full, stopping the weekly injections means potentially reversing any weight loss.

💊 Big picture: One-third of Americans say they would indefinitely pay whatever they can afford to access new weight-loss medicines such as Ozempic, according to a recent survey by STAT and The Harris Poll.