{"id":46172,"date":"2023-08-09T02:07:29","date_gmt":"2023-08-09T06:07:29","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/for-dieters-obesity-drugs-are-a-magic-pill-these-consumer-stocks-could-lose\/"},"modified":"2023-08-09T02:07:32","modified_gmt":"2023-08-09T06:07:32","slug":"for-dieters-obesity-drugs-are-a-magic-pill-these-consumer-stocks-could-lose","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=46172","title":{"rendered":"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose."},"content":{"rendered":"
\n
<\/p>\n
<\/p>\n<\/figure><\/div>\n

A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond, including to the food and beverage industries.<\/p>\n

Drugmakers are eager to play a role in this emerging market.
\n Novo Nordisk\u2019s<\/span>
\n (ticker: NVO) Ozempic, likely the most well-known of the obesity drugs, is an injectable that can curb users\u2019 appetites.
\n Eli Lilly
\n \u2018s (LLY) Mounjaro\u2014approved for diabetes but used by some for weight management\u2014logged nearly $1 billion in sales in its latest quarter; Novo will report results Thursday. Shares of both Novo and Lilly jumped on Tuesday, notching some of their biggest percentage increases in more than 20 years. <\/p>\n

\n

Big players like
\n Pfizer
\n (PFE) and Lilly are developing weight-loss pills as well, which would be easier to take than the current injectables. <\/p>\n

These drugs mostly work by suppressing appetites, making it easier for patients to reduce their caloric intake. That, in turn, could encourage them to adopt long-term changes to their diet and exercise, making it more likely for them to keep the weight off. <\/p>\n

While that seems like good news for patients and those drugmakers, other companies\u2014including those outside of healthcare\u2014could feel a more negative impact. <\/p>\n

Analysts at Morgan Stanley say if Americans\u2019 appetites significantly decrease, that could hurt demand for food and beverage companies. Restaurants could get hit too, particularly if diners view them as unhealthy. <\/p>\n

\u201cOur research shows that anti-obesity medication (AOM) patients experience significant behavioral changes while they are on the drugs, as they reduce their consumption across most food categories, but cut back the most on foods that are high in sugar and fat such as confections, baked goods, and salty snacks, as well as sugary drinks and alcohol,\u201d the analysts write. \u201cAOM patients also report cutting back on eating at restaurants, with the most significant impact on fast food and pizza.\u201d<\/p>\n

To be sure, there are still plenty of unknowns.\u00a0<\/strong>Two of the most anticipated drugs for weight management\u2014Ozempic and Mounjaro\u2014have only been approved by the Food and Drug Administration for other uses. There are also concerns about potential side effects for this class of drug, and even if these treatments are approved for weight loss, patients will likely have to meet certain criteria to qualify for a prescription.<\/p>\n

But because the majority of adult Americans are overweight\u2014a trend that\u2019s on the rise in many other countries as well\u2014investors and analysts are excited about these medications\u2019 huge potential for years to come, especially if more are covered by insurance. If analysts\u2019 outlooks for these drugs are correct, they could easily become multibillion-dollar blockbusters. <\/p>\n

The Morgan Stanley team notes that AOM patients already account for a disproportionately high level of consumption in these categories. That means snacks and carbonated soft drinks could see a 2% to 3% reduction in consumption in 2035 if these drugs become widespread.
They estimate there could be some 24 million patients on AOMs by that time, cutting their daily caloric intake by some 20%.<\/p>\n

Still, that pain will be felt unevenly. Within packaged food, companies that already have better-for-you and weight-management products\u2014like
\n BellRing Brands
\n (BRBR), Simply Good Foods (SMPL), and
\n Vital Farms
\n (VITL)\u2014will fare better, Morgan Stanley says. Meanwhile, confectionary-heavy companies like Hershey (HSY), Hostess Brands (TWNK), and
\n Mondelez International
\n (MDLZ) will likely feel more pressure to reshape their portfolio of products.<\/p>\n

The so-called empty calories of alcoholic beverages and sweetened drinks will be another area to take a hit, the analysts say. <\/p>\n

\u201cRisk is most pronounced for alcoholic beverage companies with some AOM patients foregoing alcohol consumption entirely,\u201d the firm writes.
\n Constellation Brands
\n (STZ),
\n Boston Beer
\n (SAM), and
\n Molson Coors
\n (TAP) are most exposed, given their U.S.-centric businesses, they add.<\/p>\n

Large chain restaurants also \u201cpredominantly sell arguably unhealthy food,\u201d and thus warrant monitoring, the analysts write. Of course, there are some fast-casual eateries that have already positioned themselves as healthier options, like
\n Sweetgreen
\n (SG) and
\n Cava Group
\n (CAVA), whose menus align more closely with weight-loss goals. Others like
\n Wingstop
\n (WING),
\n Krispy Kreme
\n (DNUT), and Domino\u2019s Pizza (DPZ), however, have less flexibility in shifting to cater to more health-conscious consumers, the analysts say.<\/p>\n

That said, 2035 is more than a decade away, and betting against Americans\u2019 love of fatty and sweet foods hasn\u2019t always been a winning proposition. Moreover, plenty of these stocks are still benefiting from near-term tailwinds spurring growth. Morgan Stanley still has bullish ratings even on some of the more exposed players listed above, like Domino\u2019s and Mondelez.<\/p>\n

For now at least, some of these consumer companies feeding our cravings could still see solid returns.<\/p>\n

Write to Teresa Rivas at teresa.rivas@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond, including to the food and beverage industries. Drugmakers are eager to play a role in this emerging market. Novo Nordisk\u2019s (ticker: NVO) Ozempic, likely the most well-known of the obesity drugs, is […]<\/p>\n","protected":false},"author":1,"featured_media":46173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-46172","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nFor Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=46172\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=46172\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-09T06:07:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-09T06:07:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1691561250_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=46172#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=46172\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose.\",\"datePublished\":\"2023-08-09T06:07:29+00:00\",\"dateModified\":\"2023-08-09T06:07:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=46172\"},\"wordCount\":796,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=46172#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=46172\",\"url\":\"https:\/\/ifintechworld.com\/?p=46172\",\"name\":\"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-09T06:07:29+00:00\",\"dateModified\":\"2023-08-09T06:07:32+00:00\",\"description\":\"A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond,\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=46172#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=46172\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=46172#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose. | iFintechWorld","description":"A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond,","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=46172","og_locale":"en_US","og_type":"article","og_title":"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose. | iFintechWorld","og_description":"A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond,","og_url":"https:\/\/ifintechworld.com\/?p=46172","og_site_name":"iFintechWorld","article_published_time":"2023-08-09T06:07:29+00:00","article_modified_time":"2023-08-09T06:07:32+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1691561250_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=46172#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=46172"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose.","datePublished":"2023-08-09T06:07:29+00:00","dateModified":"2023-08-09T06:07:32+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=46172"},"wordCount":796,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=46172#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=46172","url":"https:\/\/ifintechworld.com\/?p=46172","name":"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-09T06:07:29+00:00","dateModified":"2023-08-09T06:07:32+00:00","description":"A new crop of weight-loss drugs, if approved, could upend the healthcare industry. But the implications of these treatments could reach far beyond,","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=46172#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=46172"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=46172#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"For Dieters, Obesity Drugs Are a Magic Pill. These Consumer Stocks Could Lose."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/46172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46172"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/46172\/revisions"}],"predecessor-version":[{"id":46174,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/46172\/revisions\/46174"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/46173"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}