Are GLP-1s finding the right balance in obesity?

An analysis of recent pharma activity in the metabolic diseases field and why obesity is a hot topic amongst investors.

Obesity is one of the most urgent health challenges of our time, with more than half the global population estimated to be either overweight or living with obesity in the next 12 years. In just under 10 years, the global obesity treatment market size is expected to reach $51 billion, and preliminary data from the US prescription trends by DrFirst indicated that Americans are hungry for anti-obesity medication (AOMs). Whilst healthcare providers are concerned that the market for AOMs could significantly affect healthcare budgets, pharma and investors are excited by the prospect of targeting this prevalent lifestyle disease and reaping the financial rewards.

The new AOMs belong to the glucagon-like peptide-1 receptor agonists (GLP1RA) class, which were originally developed to treat diabetes, but now promise to become first-line therapy in obesity. The best-selling GLP1RA is Novo Nordisk (NOV: N) semaglutide which is marketed as a diabetes treatment under the trade names Ozempic and Rybelsus and for the treatment of obesity under the trade name Wegovy. Sales of GLP1RA’s have steadily increased by 67% from the first quarter of 2023 to $1.1 billion in the second quarter ( SSR Health 2023). With a list price of $1,349 for a four-week supply of injectable semaglutide, it is not surprising that all stakeholders are taking a keen interest in this space.