www.businessinsider.com Open in urlscan Pro
151.101.1.171  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Menu icon A vertical stack of three evenly spaced horizontal lines.
Business Insider logo Business Insider
Newsletters
Subscribe

Account icon An icon in the shape of a person's head and shoulders. It often
indicates a user profile.

Log in
Subscribe
 * Business
   * Strategy
   * Economy
   * Finance
   * Retail
   * Advertising
   * Careers
   * Media
   * Real Estate
   * Small Business
   * The Better Work Project
 * Tech
   * Science
   * AI
   * Sustainability
   * Enterprise
   * Transportation
   * Startups
   * Innovation
 * Markets
   * Stocks
   * Indices
   * Commodities
   * Crypto
   * Currencies
   * ETFs
 * Lifestyle
   * Entertainment
   * Culture
   * Travel
   * Food
   * Health
   * Parenting
   * Reviews
     * Tech
     * Streaming
     * Home
     * Kitchen
     * Style
     * Beauty
     * Pets
     * Gifts
     * Deals
 * Politics
   * Military & Defense
   * Law
   * Education
 * Personal Finance
   * Banking
   * Credit Cards
   * Investing
   * Loans
   * Mortgages
 * Video
   * Big Business
   * Food Wars
   * So Expensive
   * Explainers
   * Still Standing
   * Boot Camp
 * All
   * A-Z
   * Advertising
   * AI
   * Banking
   * Business
   * Careers
   * Commodities
   * Credit Cards
   * Crypto
   * Culture
   * Currencies
   * Economy
   * Education
   * Enterprise
   * Entertainment
   * ETFs
   * Finance
   * Food
   * Health
   * Indices
   * Innovation
   * Investing
   * Law
   * Lifestyle
   * Loans
   * Markets
   * Media
   * Military & Defense
   * Mortgages
   * Parenting
   * Personal Finance
   * Politics
   * Retail
   * Reviews
   * Small Business
   * Science
   * Startups
   * Stocks
   * Strategy
   * Sustainability
   * Tech
   * Transportation
   * Travel
   * Video
   * Featured
   * Talent Insider
   * About
   * About
   * Advertise
   * Careers
   * Code of Ethics
   * Contact Us
   * Corporate
   * Corrections Policy
   * Follow
   * RSS
   * Sitemap
   * Facebook
   * Twitter
   * Instagram
   * YouTube
   * LinkedIn
   * Subscriptions
   * Intelligence


Close icon Two crossed lines that form an 'X'. It indicates a way to close an
interaction, or dismiss a notification.
Chevron icon It indicates an expandable section or menu, or sometimes previous /
next navigation options. Home
Newsletters

Account icon An icon in the shape of a person's head and shoulders. It often
indicates a user profile.

Log in
Subscribe
Economy


WHY WEIGHT-LOSS DRUGS LIKE OZEMPIC ARE A GAME-CHANGER FOR THE GLOBAL ECONOMY

Phil Rosen
Mar 15, 2024, 1:08 PM MEZ
Share icon An curved arrow pointing right. Share
Facebook Email X LinkedIn Copy Link lighning bolt icon An icon in the shape of a
lightning bolt. Impact Link

Save Article Icon A bookmark Save

Read in app


Angle down icon An icon in the shape of an angle pointing down. Weight-loss
drugs could become a game-changer for the global economy, according to Capital
Economics. CR/Getty Images
This story is available exclusively to Business Insider subscribers. Become an
Insider and start reading now. Have an account? Log in.
 * Capital Economics said weight-loss drugs could be game-changers for the world
   economy.
 * Countries with high obesity rates like the US and Mexico have the most to
   gain, strategists said.
 * Eventually, AI could supercharge the healthcare sector, so weight-loss drugs
   could be just the beginning. 

Over recent months, GLP-1 drugs like Ozempic and Wegovy have soared in
popularity as silver bullets for weight loss. The trend has shown up everywhere
from the stock market to pop culture, and Goldman Sachs has forecasted the
medications could develop into a $100 billion market, and said that higher use
of the drug in America could springboard the economy to further growth. 

Advertisement


If the drugs gain more traction, it could lead to millions of pounds of
collective weight loss — and ultimately fuel a global economic boom, according
to Capital Economics. 

Strategists said the growth outlook for these weight-loss medications offers the
potential for game-changing GDP boosts around the world via improved labor
market activity, healthier populations, and eventually more robust healthcare. 

Advertisement


GLP-1 drugs, which target certain hormones to reduce appetite and food intake,
so far have primarily improved the corporate pharmaceutical sector. For
instance, shares of Zepbound distributor Eli Lilly have climbed 29%
year-to-date. And Novo Nordisk, which makes Ozempic and Wegovy, has seen its
stock climb more than 31% in the same stretch to boast a market cap larger than
its native Denmark. 

Billion-dollar swings in market cap have transpired even as the share of the
global population actually taking the drugs remains tiny, which implies any
economic impacts to-date have been relatively small.

In the US, estimates suggest only 1-2% of the population took the drugs in 2023.

Advertisement


The share of adults that are obese, by country. Capital Economics

"But given the rates of obesity, the potential market for the drugs is huge (in
the US, for example, over 40% of adults are obese)," strategists wrote. "So, if
take-up of the drugs continues to rise rapidly, there could be much wider
economic effects." 


HEALTHIER LABOR MARKETS AND POPULATIONS

The Organization for Economic Cooperation and Development (OECD) forecasts that,
on average between 2020 and 2050, OECD countries will spend 8.4% of their health
budget on treating the consequences of "high body mass."

Weight-loss drugs, in turn, could reduce total healthcare costs over the long
term. 

Advertisement


"For countries where healthcare is predominantly provided by the public sector,
these savings could improve the fiscal situation," Capital Economics said.
"These funds could be diverted to other, potentially more productive areas, or
instead used to reduce government borrowing compared to otherwise."

Indeed, the organization World Obesity predicts that more people leading
healthier lives could allow for less absenteeism, more labor participation, and
higher productivity.

Capital Economics said these labor market forecasts could lead to the equivalent
of 0.6% of global annual GDP by 2035, while the OECD's calculations suggest
about 1.6% of GDP per annum until 2050.

Advertisement


In any case, the drugs could be particularly beneficial for countries with the
highest rates of obesity like the US, Mexico, and Korea, the research firm
said. 

Capital Economics noted that share prices fell in 2023 for many fast-food
companies as weight-loss drugs gained popularity, though some of those losses
have since been pared. Still, the ripple effect could extend into various
directions, like people buying new, smaller clothing and airplanes saving fuel
with lighter passenger loads. 

To be sure, plenty of uncertainty remains. Some adverse side effects are still
unknown, costs could stay prohibitive, and supply may not be able to keep up
with demand. 

Advertisement



WEIGHT-LOSS DRUGS AND AI

GLP-1 drugs' emergence, meanwhile, has happened alongside the explosion of
artificial intelligence technology and hype.


RELATED STORIES



These forces could end up converging, and already healthcare has been the sector
receiving the greatest amount of AI investment, according to Capital Economics. 

"In the past, technology has tended to raise, rather than reduce, costs in the
healthcare sector," the strategists said. "But AI might change that by, for
example, making drug discovery more efficient and cheaper. If so, the economic
gains heralded by weight-loss drugs might be just the beginning."


READ NEXT


Markets Economy Ozempic
More...

Close icon Two crossed lines that form an 'X'. It indicates a way to close an
interaction, or dismiss a notification.
Advertisement

Recommended video

Advertisement

Advertisement

Advertisement





This story is available exclusively to Business Insider subscribers. Become an
Insider and start reading now. Have an account? Log in.
Follow us on:






 * * Copyright © 2024 Insider Inc. All rights reserved. Registration on or use
   of this site constitutes acceptance of our Terms of Service and Privacy
   Policy.

 * Contact Us
 * Masthead
 * Sitemap
 * Disclaimer
 * Accessibility
 * Commerce Policy
 * Advertising Policies
 * Jobs @ Business Insider

 * Stock quotes by finanzen.net
 * Reprints & Permissions

Cookie Settings
 * International Editions:
 * United States US
 * Deutschland & Österreich AT
 * Deutschland DE
 * España ES
 * Japan JP
 * Netherlands NL
 * Polska PL




Jump to

 1. Main content
 2. Search
 3. Account