Sales of Novo Nordisk’s (NVO) diabetes drug Ozempic increased by more than $1 billion from $2.3 billion in the third quarter of 2022 to $3.5 billion in the third quarter of 2023. Yahoo Finance found that at the two conferences, there was no discussion of GLP-1 at all. JPMorgan analysts at the January 2024 Healthcare Conference saw this as good news for the medical device sector, writing in a note:
Thankfully, I didn’t hear any mention of GLP-1. The bubble of fear and panic seems to have all but burst.
Pharmaceutical GLP-1 agonists treat type 2 diabetes by mimicking the GLP-1 hormone. These include Ozempic, Wegovy, Zepbound, and Mounjaro. Although these drugs have been around for almost 20 years, recent variations have recorded significant weight loss success.
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A detailed Bank of America report published in October 2023 predicted a decline in sales in sectors such as the food industry due to reduced appetite, sparking a selling frenzy. Despite these predictions of doom, restaurant franchises such as McDonald’s (MCD), Restaurant Brands International (QSR), and Wendy’s (WEN) have since improved their financial performance.
The market was concerned that weight loss and insulin control would reduce the need for bariatric procedures and monitoring devices such as blood glucose meters. But as people became more eager to track their health, the opposite happened.
