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Johnson & Johnson (NYSE:JNJ) CEO Joaquin Duato stated Tuesday that extremely in style weight problems medicine known as GLP-1 agonists are having at the very least a near-term influence on weight reduction surgical procedures.
His remarks got here after the pharma large posted better-than-expected Q3 2023 outcomes regardless of a slight underperformance in its MedTech unit, which depends on demand for gastric bypass and different bariatric surgical procedures.
“We’re seeing some influence in our bariatric enterprise within the quick time period as some sufferers are reconsidering surgical procedure, anticipating to get remedy,” Duato stated. In the meantime, CFO Joseph Wolk added that process volumes in 2024 are anticipated to stay flat after an increase in 2024.
Nevertheless, citing surgeons, the corporate stated it would not rule out a possible tailwind in the long term, given the complementary position performed by GLP-1s and bariatric surgical procedures in opposition to weight problems.
“And lots of the sufferers—about 30% of them—will not be going to be tolerating these medicines. So there could be one other funnel for our bariatric enterprise,” Duato added.
Novo Nordisk (NVO) and Eli Lilly (LLY) dominate the marketplace for GLP-1s with their FDA-approved therapies, Wegovy and Mounjaro, indicated within the U.S. for weight problems and kind 2 diabetes, respectively. Eli Lilly (LLY) is awaiting FDA authorization to market its GLP-1, often called tirzepatide, for weight reduction earlier than year-end.
Different MedTech shares with publicity to weight reduction surgical procedures embody Intuitive Surgical (NASDAQ:ISRG), ReShape Lifesciences (NASDAQ:RSLS) and Medtronic (NYSE:MDT).
In the meantime, Goldman Sachs has turn out to be the newest to foretell $100B market potential for weight-loss medicine in 2030. “The continual weight administration market is present process an inflection,” Bloomberg reported, quoting analysts led by Chris Shibutani.
The agency expects Novo Nordisk (NVO) and Lilly (LLY) to steer the anti-obesity drug market, with ~15M Individuals receiving the medicine for continual weight administration in 2030 out of about 105M overweight or obese adults.
In September, JPMorgan projected GLP-1 agonists to generate greater than $100B in annual gross sales by 2030, with LLY and NVO main the competitors.