Weight loss drugs like Wegovy could spawn a host of new piggyback product lines

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The rapid rise of weight loss drugs is generating a host of new product lines as companies hope to land on the right side of the health care disruptor.

Dutch Bioscience firm DSM Firmenich told CNBC Wednesday that it is exploring nutritional supplements to complement and compensate for some of the impacts of the weight loss drugs.

Dutch Bioscience firm DSM Firmenich told CNBC Wednesday that it is exploring nutritional supplements to complement and compensate for some of the impacts of the weight loss drugs, with CEO Dimitri de Vreeze describing it as the natural progression for the industry. "There are some side effects of weight loss drugs and that means it's more difficult to build up muscle, it's more difficult to keep your protein level up. And here we come into play. We are using ingredients, developing ingredients where that's being sort of compensated for," he said.aimed at GLP-1 drug users.

"That said, consumers could also eat more weight management foods as they strive to eat healthier and substitute such products over more indulgent snacking alternatives," he added. "We think it is too early for investors to take definitive positioning outside of healthcare stocks on the impact of GLP-1 drugs, and the range of potential scenarios is very wide," Barclays analysts wrote.

The new products come as other pharmaceutical companies are nipping at the heels of Novo and Eli in a bid to claim a share of the weight loss pie.

 

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