Kind of like how every streamer released an epic fantasy show after Game of Thrones was a massive hit, drugmakers are all angling to produce the next blockbuster weight loss drug.
What happened: As the race to dethrone Novo Nordisk as the king of weight loss drugs heats up, pharma giant AstraZeneca has signed onto a licensing agreement with Chinese drugmaker Eccogene for a weight loss drug in the same class as Ozempic and WeGovy.
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Other pharma giants, like Eli Lilly, Amgen, and Pfizer, are all working on competitors. Eli Lilly is seen as having the best shot at taking the crown with a new obesity drug.
- The drug delivers better results than Ozempic at a lower price and has received U.S. and U.K. approval. Last week, Health Canada approved a version to treat diabetes.
Why it’s happening: Ozempic maker Novo Nordisk has seen its wallet get fatter as more people shed pounds using its drugs. The company surpassed luxury conglomerate LVMH as Europe’s largest company by market valuation, and its share price is up ~47% on the year.
Yes, but: Unlike Novo Nordisk and Eli Lilly’s injectables, AstraZeneca’s drug could be the first widely available oral treatment, making it cheaper and more accessible. Rest assured, Novo Nordisk and Pfizer are also hard at work developing pill versions of weight loss drugs.
Bottom line: Making this class of weight loss drugs more accessible could give help to the 1 billion people globally suffering from obesity (and even treat heart disease and addiction). The potential price? An uptick in gastrointestinal issues and rampant user misuse.—QH