According to Morgan Stanley, sales of these products will reach $77 billion annually by 2030, or $10 a year for every person on Earth.
An estimated 650 million people - one in 12 people in the world - are obese. According to the World Health Organization, obesity is responsible for 5% of all global deaths but was not classified as a chronic disease by the American Medical Association until 2013 and the European Commission listed it as such in 2021. Global pharmaceutical companies have identified the need to combat the problem but currently, few companies are investing in this emerging sector.
In particular, Pfizer is about to launch its own weight loss product, while Novo Nordisk and Eli Lilly are struggling to cope with demand as sales of their weight loss drugs have literally exploded in the last year. Novo Nordisk’s Wegovy and Ozempic drugs and Eli Lilly’s Mounjaro have jumped in popularity due to the hype generated on social media around the results of these supplements.
Consumer demand is so high that Morgan Stanley now expects global weight-loss drug revenue to grow by 50% this year, up from 30% in 2022.
Long-term, the company recently increased its forecast for the global obesity drug market by 43% to 2030. Global sales are now projected to reach $77 billion annually by 2030, or nearly $10 a year for every person on Earth.
If the market for weight loss drugs were to meet this prediction, it would represent a third of the projected size of the global market for all cardiovascular drugs by the end of the decade.
At the same time that market could shrink if weight loss drugs help improve the cardiovascular health of the global population.
Morgan Stanley also reports that the increased demand for weight-loss drugs or other products called "GLP-1," specific to diabetes care, has indirectly supported an increase in demand from diabetic patients for the same pharmaceutical products.
However, even as Pfizer and other companies try to enter the GLP-1 market, the company expects that Novo Nordisk and Eli Lilly will maintain their lead . In the long term, he expects the two companies to reach 82% of the global GLP-1 market.
Social media has played a leading role in these companies’ growth.
Morgan Stanley claims social media hype helped raise its forecast estimates for 2030.
Word-of-mouth on online platforms helped soar Novo Nordisk and Eli Lilly shares by 43% and 41% respectively in the past 12 months. Morgan Stanley’s current price targets call for further gains of 10% and 21% respectively over the next 12 months.
Original article published on Money.it Italy 2023-08-02 16:15:00. Original title: C’è un settore che crescerà del 43% entro il 2030. Ecco i titoli da comprare
