Business worth billions

Desire for slimness makes pharmaceutical companies rich

Ozempic is a very effective drug for people with type 2 diabetes - but is now also in high demand as a weight loss injection ...

(Bild: AP)

The enormous demand for weight loss treatments and the expansion of production capacities are causing sales of weight loss injections to explode. Experts predict that these drugs could generate annual global sales of around 150 billion dollars (138 billion euros) by the early 2030s. Just a year ago, the highest sales estimates were in the region of 100 billion dollars.

"It is very unusual for a drug to capture the imagination of millions of people," says Michael Kleinrock, Senior Research Director at market research institute IQVIA. IQVIA estimates that global spending on obesity drugs amounted to 24 billion dollars last year and could reach 131 billion dollars by 2028.

Regular hype about diabetes drugs
Obesity medication, which is said to have helped Tesla boss Elon Musk and reality star Kim Kardashian to lose weight, has been the subject of much hype for some time now. The weight loss injection Wegovy from Novo Nordisk provides a longer feeling of satiety and, according to study data, in combination with a change in diet and exercise, leads to an average weight loss of around 15 percent.

The weight loss injection Wegovy from Novo Nordisk provides a longer feeling of satiety.

(Bild: AFP)

The drug belongs to the class of so-called GLP-1 agonists, which were originally developed for the treatment of type 2 diabetes. In addition to Novo Nordisk, the US pharmaceutical company Eli Lilly is also in the race with the drug Zepbound. Other drugs are currently in development.

People are willing to pay for it
Most health insurers do not cover the new therapies. Wegovy is currently not available in Austria as it has not yet been approved for the Austrian market. The drug therefore has to be imported via detours - at high cost. Ozempic, on the other hand, is a drug that requires a doctor's prescription and is only covered by social insurance under certain conditions for people with type 2 diabetes mellitus and obesity. Outside of these criteria, it is only available on prescription and can cost between 140 and 300 euros per month on a "private prescription".

In Germany too, weight loss injections are completely excluded from reimbursement by statutory health insurance companies, as drugs for regulating body weight are considered lifestyle drugs. The treatment costs several hundred euros per month, but according to market researcher Kleinrock, more and more people are prepared to pay for the medication out of their own pocket. Drug manufacturers are hoping for reimbursement in the future and have published further study data to prove the health promotion and medical benefits of weight loss injections.

Demand ensures more production
According to Kleinrock, whether the sales volume of 131 billion dollars will be achieved also depends on how long patients use the weight loss injections, whether the drugs will also be used to treat other illnesses in the future and whether they can therefore be reimbursed by health insurance companies. The expansion of production, which manufacturers are currently working on, should also provide a significant boost.

BMO Capital Markets now estimates that annual sales of weight loss drugs will reach 150 billion dollars by 2033, compared to a previous year's forecast of over 100 billion in the early 2030s. Leerink predicts annual sales of as much as 158 billion dollars by 2032. "There is high consumer demand and unmet medical need," says David Song, portfolio manager of the Tema Obesity & Cardiometabolic ETF. "More than 100 million Americans are obese, and even more are overweight. There are estimates that nearly one billion people worldwide are obese."