Weight-loss market to see 16 new drugs by 2029, report estimates
Sept 10 (Reuters) -The market for weight-loss treatments is expected to see 16 new drugs vying for a slice of the lucrative business currently dominated by Novo Nordisk NOVOb.CO and Eli Lilly LLY.N, according to estimates from analysts at Morningstar and Pitchbook.
In a joint report published on Monday, analysts estimated the market for obesity treatments could expand to $200 billion by 2031. The 16 drugs could launch by 2029, with roughly $70 billion of the GLP-1 market coming from these new challengers.
WHY IT'S IMPORTANT
Surging demand for Novo's Wegovy and Lilly's Zepbound has sparked interest among competitors to test their own weight-loss treatments. Companies such as Amgen AMGN.O and Pfizer PFE.N are currently testing their drug candidates in clinical trials.
These developments come amid criticism from lawmakers over the high costs associated with these medications. The new entrants, however, are expected to drive down prices as they vie for market share, according to the report.
CONTEXT
The potential new treatments include those from Boehringer Ingelheim and Zealand Pharma ZELA.CO, along with competitors from Roche ROG.S, Amgen AMGN.O and Pfizer PFE.N, according to the report, provided that the drugs clear clinical trials.
Other entrants include those by Structure Therapeutics GPCR.O, Viking Therapeutics VKTX.O and Altimmune ALT.O, along with next-generation drugs by Novo and Lilly.
Analysts, last year, had forecast the obesity market would be $170 billion by 2031, but have recently raised their estimates, partly due to anticipated higher diabetes market penetration.
The report projects 41% individuals with diabetes and nearly one-quarter of nondiabetic obesity patients will be on a GLP-1 drug by 2031.
WHAT'S NEXT
Analysts expect significant acquisitions by major pharmaceutical companies in the obesity sector over the next 18 months, targeting smaller companies specializing in obesity drug development.
Potential acquisition targets include firms such as Structure, Viking and Altimmune.
Private companies such as NodThera, Corteria and Diasome have a higher-than-50% chance of being acquired, according to PitchBook data.
Reporting by Sneha S K in Bengaluru; Editing by Mohammed Safi Shamsi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
