The Potential $100 Billion Industry of Weight Loss and Diabetes Drugs

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Weight Loss,Diabetes Drugs,Industry

Weight loss and diabetes drugs have become a hot topic on Wall Street, with predictions of their impact on America's biggest companies. However, the long-term implications of these drugs are still largely unknown.

Weight loss and diabetes drugs — a potential $100 billion industry — have captured Wall Street’s imagination.

Bank of America analysts said that the dramatic weight loss seen with GLP-1s, and the early indications they can help curb addictions, could eventually expand their impact beyond food to tobacco, gaming, and apparel.Due to this and other headwinds, consumer staples stocks, long the ole’ reliable of the investing world, have been in a free fall. The S&P Consumer Staples Index is down 8% year-to-date, compared to the 8% gain the larger index enjoyed.

"For there to be a view that these weight loss drugs are having a population-level impact on food consumption, I just think is inaccurate,” RBC Capital Markets' Nik Modi) CEO Michele Buck pointed out the emotional nature of food on its Q3 earnings call, as the chocolate maker recorded a 11% year-over-year jump in revenue.she believes that the actual impact from the drugs will be not a reduction in food buying, but rather a shift to healthier foods.

"We’re seeing some impact in our bariatric business in the short term as some patients are reconsidering surgery, expecting to get treatment," J&J CEO Joaquin Duato said. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. Follow Anjalee on all social media platforms

Steve Ballmer joined Microsoft in 1980 as Bill Gates' assistant, became CEO in 2000, and retired in 2014 with a 4% stake that's worth a fortune today.

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