How to cash in on the new weight loss obesity drugs

Two of my friends here in the UK who were overweight and pre-diabetic have started to take weight loss drugs.

They were not on an NHS prescription however and it had to be paid for out of their own pocket. Each were paying over £200 a month but the results have proved remarkable. Both women have lost weight and look so much healthier, happier and more attractive! Clearly, these drugs advertise themselves!

This, of course, means that the potential for the success of these drugs is enormous, for both women and men.

Major drugmakers like Eli Lilly and Novo Nordisk manufacture popular weight loss drugs such as Zepbound and Mounjaro (Eli Lilly) and Wegovy and Ozempic (Novo Nordisk). Other pharmaceutical companies like Merck, Pfizer, and AstraZeneca are also developing new weight loss pills to compete in the lucrative obesity drug market. 

Key Manufacturers and Drugs are:

Eli Lilly

Produces Zepbound (tirzepatide) and Mounjaro (also tirzepatide), which are "dual-agonist" drugs that work on two hormone pathways. They are also developing oral obesity drugs like orforglipron. 

Novo Nordisk

Manufactures Wegovy (semaglutide) and Ozempic (semaglutide), both of which are "single-agonist" drugs that activate one hormone pathway. They are also working on other potential weight loss medications. 

In Development

Several other pharmaceutical companies are also developing weight loss drugs to compete in this growing market, including: 

Merck, Pfizer, AstraZeneca, Structure Therapeutics, Viking Therapeutics and Boehringer Ingelheim (working on Survodutide).

Buying shares 

There are two ways to invest in this new health tsunami which may be the answer to obesity and type 2 diabetes:

1. Buy shares in the drug companies 

2. Buy shares in the health companies who sell the drugs 

Key Companies of Oral Weight loss drugs

Novo Nordisk: This company produces Rybelsus, the first oral GLP-1 treatment for weight loss in some regions. They are also developing new oral treatments, like the investigational drug amycretin, for the weight loss market. 

Eli Lilly: Lilly is developing orforglipron, an oral GLP-1 receptor agonist for obesity. 

Ipsen (through subsidiary): Xenical is a branded version of orlistat. 

Other Manufacturers: Orlistat itself and the lower-dose version Alli are also available, often in generic forms or through various pharmacies like MedExpress and Boots Online Doctor. 

Vivus: Produced Qsymia, an oral medication combining phentermine and topiramate. 

So I have purchased shares in Ely Lily LLY (up 18% in 1 month) and Novo Nordisk NOV (up 9% in 1 month). Investing in smaller drug companies is too risky for me. 

Astrazenica (AZN) have some weight loss drugs in Phase 2 trials, but Phase 3 trials are not yet started, so it is too early to invest in them for me. Roche and GSK currently make tablets and so are alternative investment candidates.

As for health companies, I have invested in HIMS (up 8% in one month), OSCR (up 29% in 1 month) and United Health UNH (up 35% in 1 month).

The oral pill drug from Novo Nordisk does not seem to be as effective as the injected drug, but it may be more convenient and cheaper. 

The drugs work by making you less hungry (reduces appetite) and makes you feel full after only eating a small amount of food. It makes the body produce more insulin but less glucose.

Since you will start to put on weight as soon as you stop taking the drug, obesity drugs are likely to become just as 'addictive' and lucrative as tobacco is!