© Reuters. FILE PHOTO: Boxes of Ozempic, a semaglutide injection drug used for treating kind 2 diabetes made by Novo Nordisk, is seen at a Rock Canyon Pharmacy in Provo, Utah, U.S. March 29, 2023. REUTERS/George Frey/File Photo
(Reuters) – U.S. corporations throughout sectors reminiscent of meals and beverage makers and producers of glucose screens have confronted investor questions over the threat to future gross sales from the rising reputation of promising weight-loss therapies.
Drugs in a category often called GLP-1, reminiscent of Novo Nordisk (NYSE:)’s Wegovy and Ozempic and Eli Lilly (NYSE:)’s Mounjaro, have been proven to assist management blood sugar and dramatically decrease weight in scientific trials.
Here’s what corporations have mentioned about the potential influence:
RETAILERS, FOOD AND BEVERAGE COMPANIES
Conagra would possibly take into account altering portion sizes of its snacks if the rising use of weight-loss medication results in a change in meals consumption patterns.
Walmart (NYSE:) expects revenues from its well being and wellness merchandise to extend in the second half of the 12 months, primarily as a consequence of the reputation of weight-loss medication.
PepsiCo (NASDAQ:) Chief Financial Officer Hugh Johnston has mentioned the firm is “not seeing any impact” but from the reputation of weight-loss medication.
DIALYSIS SERVICES PROVIDERS
Germany’s Fresenius Medical Care (NYSE:) mentioned that use of Ozempic and different medication of the similar class would have an general impartial effect on what number of sufferers would require its kidney dialysis providers in the future.
Davita is carefully monitoring developments associated to the drug and expects restricted influence from use of the medication, since they could solely profit some kidney illness sufferers.
MEDICAL DEVICE MAKERS
Johnson & Johnson (NYSE:)’s third-quarter gross sales for units utilized in stomach surgical procedures was hit by a slowdown in demand for weight-loss and different procedures, as many overweight sufferers turned to Wegovy and Ozempic.
The firm’s Chief Financial Officer Joseph Wolk mentioned use of the medication may ultimately make sufferers eligible for procedures like hip and knee replacements or different orthopedic surgical procedures.
Abbott Laboratories (NYSE:), which makes glucose monitoring merchandise, has mentioned that the market was overestimating the influence to its gross sales from rising reputation of the medication.
Abbott CEO Robert Ford (NYSE:) has mentioned that diabetes sufferers may find yourself utilizing glucose screens with the weight-loss medication in the long run.
Insulet (NASDAQ:) Corp expects that the use of Ozempic and Mounjaro may delay the time for sufferers to turn into depending on insulin, however doesn’t anticipate its long-term marketplace for insulin pumps to be impacted.
Surgical robots maker Intuitive Surgical (NASDAQ:) has warned that Wegovy’s reputation is weighing on demand for bariatric, or weight-loss, surgical procedures.
DRUG DISTRIBUTORS
Cencora, previously known as AmerisourceBergen (NYSE:), Cardinal Health (NYSE:) and McKesson (NYSE:) have flagged potential increase to revenues this 12 months owing to the rising demand for weight-loss medication.
