SUMMARY / TLDR: TEXT
MARKET OPPORTUNITY: OBESITY EPIDEMIC
Rising obesity rates worldwide are straining healthcare systems. WHO (World Health Organisation) is stating that global obesity rates have nearly tripled since 1975 and are projected to impact over 50% the global population by 2035 (vs. 38% in 2020).
United States of America (US) again leads the pack here. It continues to face a severe obesity epidemic that has significantly worsened over the past several decades. Obesity rates have increased from 30% to more than 40% over the last twenty years. Severe obesity rates have doubled during the same period. And US is not alone – many countries are following the trend.
OBESITY TREATMENT MARKET SET TO EXPLODE
The obesity treatment market is set for explosive growth. Goldman Sachs Research estimates that by 2030 the market could reach $130 billion – currently standing at 6bn in 2023, achieving a staggering CAGR of 60%! (Source: Goldman Sachs Global Investment Research: Obesity Market Model update (30 May 2024))
WHAT ARE GLP-1 DRUGS?
GLP-1 receptor agonists represent a transformative advancement in the fight against obesity, a growing global health crisis. These medications function by mimicking the activity of the naturally occuring hormone GLP-1, which helps regulate blood sugar and decrease appetite. Common GLP-1 drugs include (most of them produced by Novo Nordisk $NVO):
– Semaglutide (Wegovy, Ozempic)
Uses: Type 2 diabetes (Ozempic), obesity (Wegowy)
– Liraglutide (Saxenda, Victoza)
Uses: Type 2 diabetes (Victoza), obesity (Saxenda)
– Others
MARKET OPPORTUNITY: REVOLUTIONARY DRUGS
GLP-1 treatments are at the cutting-edge of medical advancements in weight management. These treatments have shown transformative effects on weight loss and metabolic health, with drugs like Ozempic, Wegovy, Zepbound and Mounjaro leading the charge.
Next to the weight management, GLP-1 receptor agonists are being explored for potential uses in other serious health conditions. Emerging research suggests that these drugs could also play a significant role in managing type 2 diabetes, non-alcoholic steatohepatitis, cardiovascular diseases and even addiction.
$HIMS Hims & Hers Health Inc, a healthcare company, went public via SPAC in 2021. Could this be one of the rare examples of a successful SPAC? The revenue base has expanded handsomely, gross margins are high, and they recently turned a profit for two consecutive quarters.