Teresa O’Connor has reason to hope. A 36-year-old nurse from Edmonton, Alberta, Canada, she had been battling with her weight for years. O’Connor — a real individual whose name we have changed for privacy reasons — worked out at a fitness studio almost every day and was a regular jogger and walker. But the excess pounds stubbornly refused to go, and blood tests were showing initial signs of diabetes. Her doctor proceeded to prescribe Ozempic, a diabetes drug that is also used to lose weight. Success was evident after just a few shots. O’Connor’s blood sugar returned to healthy levels and she was finally able to slim down.
O’Connor’s story is just one of many. Hundreds of thousands of people around the world are turning to a group of drugs known as GLP-1 analogs in order to shed unwanted pounds. In the USA, where the percentage of overweight and obese individuals is especially high, one in eight adults is reported to have received a prescription despite the fact that the drugs have only recently become available. The results are astonishing: for the first time in decades, the country’s obesity rate is going down instead of up.
Sales are soaring
The active agent mimics the body’s own GLP-1 hormone and binds to its receptors. That stimulates the production of insulin, which stabilizes blood sugar levels. The gastric emptying process slows down, and the sensation of hunger declines. Moreover, artificially produced GLP-1 breaks down very slowly, and therefore has a longer and more intensive effect than its natural counterpart. Around one billion people are estimated to be living with obesity. And studies show that those who stop taking Ozempic or similar GLP-1 preparations quickly regain the weight they lost. As a result, many physicians have come to view GLP-1 analogs as a lifelong course of treatment.
Pharmaceutical companies with GLP-1 analogs in their portfolios are seeing a rise in sales. Their value on the stock market is rising as well. One example is Novo Nordisk a leading global drug producer headquartered in Denmark, which is now the most valuable company in Europe. In 2017, it began producing Ozempic for diabetics. In 2021, it brought a higher dose of the same active ingredient, semaglutide, onto the market as a weight-loss medication called Wegovy. In the US, the Eli Lilly company makes GLP-1 analogs under the Mounjaro and Zepbound brand names. Numerous other pharmaceutical companies have joined the action. Boehringer Ingelheim and Pfizer are two more firms investing in the development of GLP-1 medications.
Pharmaceuticals boost food sales
“Pharmaceuticals are just one of the sectors affected by this boom,” says Lochan Kongera, a consultant and expert in retail and consumer goods at the Porsche Consulting management consultancy. The food industry, too, will be adapting to a new group of consumers. After all, people who take GLP-1 medications usually change their buying patterns at supermarkets. According to surveys, GLP-1 users not only consume 20 to 35 percent fewer calories than before but are also turning to different food products. They are more apt to leave snacks, chips, soft drinks, and candy on the shelves while opting instead for fruit, vegetables, and high-protein items. The Walmart retail corporation, whose in-house pharmacies provide Ozempic and similar medications, has the customer data to back this up. When its CEO addressed the topic in an interview, far-ranging repercussions included drops in the share prices of Coca-Cola and PepsiCo. Market analysts feared that the Ozempic boom might lead to a decrease in sales of sugary drinks.