The hype around Wegovy, Zepbound and other GLP-1 products over the last year or so has, at times, mirrored the hyperbolic expectations pinned on AI. In case you weren’t aware, GLP-1 is an acronym for glucagon-like peptide. The likes of Novo Nordisk and Eli Lilly (the manufacturers of the two above products) turn these molecules into drugs that can help users manage obesity. Public figures as diverse as Elon Musk and Oprah Winfrey have endorsed their revolutionary potential. Walk through New York’s Times Square, as your author did recently, and many rivals are now jumping on the bandwagon too.

First some facts. The world has a major obesity problem. One in ten adults suffers from it. More than 1bn people, including 7% of girls and 9% of boys are now classified as obese. In 2019, it led to around 5m deaths, 20 times as many as malnutrition did. The number of people with obesity has doubled since 1990. By the end of this decade, more than 3bn people globally could be classified as either overweight or obese (all data per the World Health Organisation).

If drugs can go some way to reducing the obesity burden, then this surely must be a good thing. What is even more exciting is that the same drugs may have “far-reaching benefits beyond what we initially imagined”, per a recent publication from a leading team at Yale University. We discussed earlier this year how GLP-1 solutions could help slow the impact of Alzheimer’s Disease, but the more recent studies suggest that some cancers as well as arthritis may be treatable with GLP-1s. The Yale report notes – perhaps somewhat buoyantly – that the drugs could also “slow down the ageing process.”

Type, however, “problems with taking Wegovy” or similar into Google and a litany of concerns are cited. These could include nausea, vomiting, headaches, fatigue and more. Your author caught up earlier this week with a friend who has been using the drug to treat weight loss to hear his (admittedly anecdotal) impressions. Have no doubt, GLP-1s had a marked impact in terms of suppressing hunger and other addictive behaviours such as alcohol and tobacco. It left him with “a feeling of fullness.” On the downside, the drugs did reduce energy levels, impacting desire to go to the gym, for example. A lack of reward mechanism, or pleasure, from small treats (such as a sugary snack or a glass of wine) was also absent. These may be a small price to pay for losing weight. At the same time, given current cost levels of GLP-1s and their relative lack of availability, do not consider them a panacea. The world needs to eat more healthily too.

19 September 2024

The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Heptagon Capital is an investor in Novo Nordisk. The author of this piece has no personal direct investment in the business. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

Click here to view all Blog posts.

Alex Gunz, Fund Manager

Photo by the author

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.

Related Insights

Season 6, Post 39: Hanging out with the cyber experts
  • Featured Insights

Season 6, Post 39: Hanging out with the cyber experts

Alex Gunz Discusses Cybersecurity on the IBKR Podcast
  • Featured Insights

Alex Gunz Discusses Cybersecurity on the IBKR Podcast

Season 6, Post 38: Sightseeing with salmon
  • Featured Insights

Season 6, Post 38: Sightseeing with salmon

GET THE UPDATES

Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.