According to a recent Reuters article, Novo Nordisk and Eli Lilly are dealing with soaring demand for their weight-loss drugs, Wegovy, Ozempic, and Mounjaro. The drugs have exceeded sales expectations, creating challenges in meeting the increasing demand. Supply constraints have arisen due to the global boom in obesity treatments. Lilly's Mounjaro, initially approved for type 2 diabetes but increasingly used off-label for weight loss, is expected to see U.S. approval for obesity treatment soon, further straining supply. The supply issues are indicative of the growing popularity of these drugs as people seek non-invasive weight-loss solutions outside of diet and exercise.
The success of these drugs has ignited a buying frenzy in Novo and Lilly shares, with both companies experiencing substantial stock price increases in 2023. These drugs have also impacted the healthcare industry and could potentially influence the demand for food and related products, given their effectiveness in managing conditions exacerbated by excess weight.