Big Food vs. Big Pharma: Companies bet on snacking just as weight loss drugs boom

  • 📰 NBCLA
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 59%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Kellogg, J.M. Smucker and other food companies are making big bets on snacking, but the rise of Wegovy and Ozempic could pose a threat to future sales growth.

But not everyone in the industry agrees with that assessment.Boxes of Ozempic, a semaglutide injection drug used for treating type 2 diabetes and made by Novo Nordisk, is seen at a Rock Canyon Pharmacy in Provo, Utah, May 29, 2023.

For one, GLP-1 drugs like Wegovy and Ozempic are expensive, with a list price of roughly $1,000 a month. That high price has led some insurers to decide not to cover the treatments.Aetna, cover prescriptions of these drugs, the federal Medicare program, many state Medicaid programs and some commercial insurers don't, leaving patients to pick up the bills themselves.Many of the consumers who eat the most junk food likely won't be able to afford Wegovy or Ozempic.

What's more, patients have to inject themselves once a week, and if they stop taking the treatments, their effects disappear, usually erasing any weight loss that had occurred over time. "We acknowledge that the impact in the near term is likely to be limited given drug adoption will grow gradually over time, but we could see a longer-term impact as drug prevalence increases," Morgan Stanley's Paula Kaufman wrote in a note to clients."Moreover, we expect companies to adapt to changes in consumer behavior through innovation and portfolio reshaping efforts."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 319. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The sale of this food prep company could lead to a ‘super-food’ mobile appMatching two favorite foodie services could be a winner for this part of industry players.
Source: startelegram - 🏆 248. / 63 Read more »

US Supreme Court to weigh state laws constraining social media companiesThe U.S. Supreme Court on Friday agreed to decide the legality of Republican-backed state laws that constrain the ability of social media companies to curb content on their platforms that these businesses deem objectionable.
Source: Reuters - 🏆 2. / 97 Read more »