U.S. firms throughout sectors equivalent to meals and beverage makers and producers of glucose displays are going through investor questions over the chance to future gross sales from the rising recognition of promising weight-loss remedies.
Medicine in a category generally known as GLP-1 equivalent to Novo Nordisk’s Wegovy and Ozempic in addition to Eli Lilly’s Mounjaro and Zepbound have been proven to assist management blood sugar and dramatically decrease weight in scientific trials.
Novo Nordisk on Saturday offered information displaying that the guts protecting advantages of Wegovy will not be solely because of weight reduction.
Right here’s what firms have mentioned in regards to the potential affect:
Retailers, meals and beverage firms
Conagra may contemplate altering portion sizes of its snacks if the rising use of weight-loss medication results in a change in meals consumption patterns.
Walmart expects revenues from its well being and wellness merchandise to extend within the second half of the yr, primarily because of the recognition of weight-loss medication.
Coca-Cola CEO James Quincey mentioned the corporate was monitoring what affect, if any weight-loss medication may have.
Hershey’s CEO Michele Buck mentioned the usage of the medication was not materially impacting the chocolate maker’s enterprise.
Keurig Dr Pepper CEO Robert Gamgort mentioned it was not seeing any affect from the usage of the medication on espresso consumption.
Dialysis companies suppliers
Germany’s Fresenius Medical Care mentioned that use of Ozempic and different medication of the identical class would have an general impartial impact on what number of sufferers would require its kidney dialysis companies sooner or later.
Davita is intently monitoring developments associated to the drug and expects restricted affect from use of the medication, since they might solely profit some kidney illness sufferers.
Medical system makers
Johnson & Johnson’s third-quarter gross sales for gadgets utilized in stomach surgical procedures was hit by a slowdown in demand for weight-loss and different procedures, as many overweight sufferers turned to Wegovy and Ozempic.
J&J Chief Monetary Officer Joseph Wolk mentioned use of the medication might finally make sufferers eligible for procedures like hip and knee replacements or different orthopedic surgical procedures.
Abbott Laboratories, which makes glucose monitoring merchandise, has mentioned that the market was overestimating the affect to its gross sales from rising recognition of the medication.
Abbott CEO Robert Ford has mentioned diabetes sufferers might find yourself utilizing glucose displays with the weight-loss medication in the long run. Dexcom, which additionally makes such displays, mentioned one thing comparable in late October.
Insulet Corp expects that the usage of Ozempic and Mounjaro might delay the time for sufferers to grow to be depending on insulin, however doesn’t count on its long-term marketplace for insulin pumps to be impacted.
Surgical robots maker Intuitive Surgical mentioned the U.S. development fee for weight-loss surgical procedure was slowing as sufferers think about using the brand new medication as an alternative.
Nonetheless, Intuitive doesn’t count on sufferers to remain on these medication for longer than a yr or two.
Boston Scientific expects the affect from weight reduction medication on its coronary heart gadgets to be “very restricted” within the brief time period and “minor” in the long run.
Michael Farrell, CEO of Resmed, which makes gadgets to deal with sleep apnea, mentioned on an October investor name the corporate is “monitoring many 1000’s of sufferers on GLP-1 and we’re seeing upkeep of adherence. We’re seeing upkeep of resupply applications and actually no change.”
(Reporting by Bhanvi Satija, Ananya Mariam Rajesh and Leroy Leo in Bengaluru; Enhancing by Mrigank Dhaniwala and Arun Koyyur)