New weight-loss drugs like Ozempic are already having a heavy economic impact

Demand in the US for weight-loss drugs is surging. In fact, Wegovy- and- Ozempic- maker Novo Nordisk, which is based in Denmark, is currently generating so much American investor interest and revenue from the drugs that it’s strengthening the Danish currency relative to the euro, leading the country’s central bank to keep its interest rates low. (Any Danes reading this? You’re welcome🤝.)

To provide a further idea of the drugs’ current/projected economic impact:

• Novo Nordisk has seen its market value increase ~38% this year to reach ~$414 billion. Denmark's estimated 2022 GDP was $406 billion.
• Wall Street analysts predict this class of new obesity drugs could eventually exceed $100 billion in annual sales, which would represent one of the largest drug classes of all time.
• Around 40% of US adults are obese. And, according to a recent survey by STAT and The Harris Poll, one-third of Americans say they would indefinitely pay whatever they can afford to access new weight-loss medicines such as Ozempic.

💰📈 The ingredients for making some green are all there. Nothing gets investors more hyped than a product with a massive target market, high price point (Ozempic and Wegovy both cost ~$12,000/year), and benefits that can be quickly reversed once the drug stops being taken.

+Related reading: Weight-loss pills with the same effects as the injection-based Ozempic and Wegovy could soon be on the horizon.