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According to Goldman Sachs, the market for weight-loss drugs such as Ozempic and Wegobee will continue to grow rapidly thanks to new products such as Eli Lilly’s Zepbound.
The bank predicted in a research note that the sector’s value could reach $130 billion by 2030, $30 billion higher than its previous forecast.
A team of analysts led by Chris Shibutani said Eli Lilly and Danish giant Novo Nordisk would remain major players, with a combined 80% market share by the end of the decade.
The shares of both companies have risen significantly since the beginning of 2023 amid increased demand for obesity treatment drugs.
Eli is currently valued at $775 billion, up 37% this year and far surpassing Tesla’s market capitalization of $550 billion.
Shibutani’s team cited the November Food and Drug Administration approval of Lilly’s new drug Zepbound and expanded FDA indications for Novo’s Wegobee as “significant events” that led Goldman to raise its forecast.
When Lilly reported its first-quarter results in April, it said strong demand for drugs including Zepbound, Maunjaro, Verzenio and Jardiance helped drive a 26% increase in sales to $8.77 billion.
The Indianapolis-based company announced last month Double investment in manufacturing plants To increase production of drugs that can also be used to treat sleep apnea and obesity.
Goldman Sachs also raised its forecast for the number of U.S. adults who take medication for chronic weight management, excluding those prescribed medications to treat type 2 diabetes, from 15 million to 19 million.