Next to artificial intelligence, one of the biggest investment themes over the past few years has been a class of anti-obesity drugs called glucagon-like peptide 1 (GLP-1) therapies, better known by the brand name Ozempic, which is made by Danish pharmaceutical company Novo Nordisk (NVO).
Since its approval for the treatment of diabetes by the Food & Drug Administration in 2021 and subsequent feature on the Dr. Oz TV show and celebrity testimonials, demand for Ozempic has skyrocketed. Novo Nordisk subsequently developed Wegovy to specifically target weight-loss.
Eli Lilly (LLY) followed in 2022 with Mounjaro, a drug similar to Ozempic, but one that also targets glucose-dependent insulinotropic polypeptide (GIP) receptors. Last year Lilly introduced Zepbound specifically for weight loss and is rapidly gaining market share due to its greater efficacy in weight-loss.
Both pharma giants have had difficulty producing enough of the drugs to meet demand. And though each saw their stocks soar due to GLP-1s, there is a better way to play the market.
This post originally appeared at Money Morning.