Now it's all about the GLP-1s: The obesity drugs that ate up the pharma landscape
GLP-1 drugs drive significant market growth, expected to reach $100 billion by 2030 (1,124 words, 5.3 minutes)
The increase in prescriptions of Glucagon-like peptide-1 (GLP-1) medications, particularly those such as Wegovy, Ozempic, and Mounjaro, could reshape the pharmaceutical landscape in 2024 and beyond.
Originally developed to treat type 2 diabetes, these drugs have since gained traction for their weight-loss effects, positioning them as a significant force in the treatment of obesity. With obesity rates steadily rising in the U.S. and globally, J.P. Morgan Research reports that the demand for these drugs is expected to grow substantially, potentially generating over US$100 billion in revenue by 2030. This surge could solidify the dominance of companies such as Novo Nordisk, manufacturers of Ozempic, and Eli Lilly, manufacturers of Mounjaro, elevating them to the upper tier of global pharma companies.
According to DelveInsight Business Research LLP, the market for GLP-1 agonists is evolving rapidly. Yahoo! Finance notes that the main reason for this rapid growth could be that these drugs offer weight loss of 15 to 25% on average, significantly outperforming previous obesity treatments. The expansion of the GLP-1 class also marks a shift in the competitive dynamics of the pharma sector. While sources such as Evaluate report that oncology continues to dominate as the most valuable therapeutic area, forecasted to reach US$370 billion by 2030, the rapid growth of the GLP-1 market highlights the increasing prominence of endocrinology, particularly in obesity and diabetes management. This shift underscores the growing importance of metabolic disease treatments in the broader pharma landscape.
The rise of GLP-1 drugs is also expected to foster further innovation and competition within the pharma industry. GLP-1s could be integrated into treatments for other conditions, such as cardiovascular disease and neurodegenerative disorders. A study in Pharmacological Research found that GLP-1 receptor agonists show potential in reducing neuroinflammation and treating neurodegenerative diseases based on cellular and animal studies. Though further human clinical trials are required to confirm the safety, tolerability, and efficacy of GLP-1R agonists in reducing neuroinflammation in the human brain, this could be a stepping stone.
Despite the optimism surrounding GLP-1 drugs, their rapid growth has also introduced challenges and uncertainties. For instance, Drug Discovery & Development notes that the Inflation Reduction Act (IRA) could introduce pricing pressures in the U.S. The act empowers Medicare to negotiate prices for high-cost drugs, which could impact future pricing and revenue for GLP-1 drugs such as Ozempic and Wegovy. Although the full impact of the IRA is yet to be determined, the legislation could prompt companies to rethink their R&D investments and overall strategy, especially as biologics and small molecule drugs face differential treatment under the law.
Science reports that regulatory concerns have also emerged, particularly regarding side effects. Complications, including nausea and other gastrointestinal problems, lead some to abandon treatment, and these side effects may complicate patient adherence. Additionally, the long-term need for these drugs raises questions. A significant portion of patients regain lost weight after discontinuing treatment, suggesting that GLP-1 drugs may need to be taken indefinitely for sustained effects. Doctors also worry about the potential of GLP-1 therapies being used off-label among people who are not overweight or obese, raising ethical considerations about the broader societal impact of these medications.
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THIS WEEK 09/17/24
Takeda Canada appointed Vatroslav (Vatro) Mateljic as its new General Manager to lead the Japanese company's Canadian operations. Over the last 25 years, Mateljic has held many executive leadership roles in sales, marketing, and country management in the pharmaceutical industry. Most recently, he served as Takeda’s General Manager in Sweden.
The U.S. FDA approved Eli Lilly’s lebrikizumab-lbkz (Ebglyss), a targeted IL-13 inhibitor, for the treatment of patients 12 years of age and older who weigh at least 88 pounds (40 kg) with moderate-to-severe atopic dermatitis (eczema) that is not well controlled despite treatment with topical prescription therapies.
Genentech, a member of the Roche Group, announced that the U.S. FDA has approved atezolizumab and hyaluronidase-tqjs (Tecentriq Hybreza), a PD-(L)1 inhibitor for subcutaneous injection for patients with certain types of lung, liver, skin, and soft tissue cancer.
Health Canada issued a Notice of Compliance for Sanofi’s dupilumab injection (Dupixent) for the treatment of patients with eosinophilic esophagitis aged one year and older, weighing at least 15 kg.
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We’ve seen some substantial changes in Covid, both quantitatively and qualitatively. Quantitatively, there’s been a 35 per cent increase compared to last year in email and internet-type advertising within promotional systems divisions, which is a sizable growth. This has driven qualitative changes as well, particularly in terms of segmentation. Segmentation tends to be easier in a digital forum, leading to higher submission volumes. Our reviewers are very busy right now. We’re seeing more segmentation from both a demographic and a value-graphic point of view.
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