Recently, Lars Fruergaard Jorgensen, CEO of the Danish pharmaceutical group Novo Nordisk, revealed at an event in New York that several food company CEOs have been calling him to inquire about the efficacy and release speed of the "weight loss miracle drug".
Since last year, Semalutide, a subversive drug ingredient developed and produced by Novo Nordisk, has swept clinics in Europe and the United States. Wegovy, a weight loss drug with Semalutide as an effective ingredient, and Ozempic, a diabetes drug, have become household names.
It is understood that Smeglutide, a GLP-1 drug, can reduce blood sugar by simulating an intestinal hormone called GLP-1 and regulating patients' appetite to achieve the effect of treating type 2 diabetes and obesity. Meanwhile, scientists have discovered that drugs also have other functions such as treating kidney disease and inhibiting systemic inflammation.
Caixin News Agency previously mentioned that the popularity of Smegglutide may have potential impacts on industries such as food and beverage, medical devices, etc. Zhou Fude said that the degree of impact of drugs may vary by industry, for example, Vegway has already achieved significant clinical effects in treating weight related diseases such as kidney disease and knee osteoarthritis.
According to data from analysis agencies, by 2030, the size of the weight loss market alone may reach $80 billion. Wall Street research suggests that small changes in consumer behavior may have significant financial impacts. A few months ago, Wal Mart, the largest chain retailer in the United States, warned that some consumers had reduced their shopping demand after taking weight loss drugs.
In this regard, French company Danone, which has a yogurt business, believes that GLP-1 drugs will promote the development of the company's business, as people taking Smegglutide drugs will seek products with high protein and low fat content. Chipotle, a Mexican flavor chain restaurant in the United States, also stated that fresh food will still attract those who are trying to lose weight.
When asked if Unilever CEO Hein Schumacher had called Zhou Fude, he gave a negative answer. But Schumacher admits that the company is closely monitoring the situation, "you can't close your eyes to what's happening."
For some food producers who are considered unhealthy, Novo Nordisk's difficulty in quickly driving drug production may be good news. Zhou Fude pointed out that the company's acquisition of three production bases of Kangtai Lunte is the key to increasing production.
Earlier this week, Novo Holdings, the controlling shareholder of Novo Nordisk, announced that it will acquire Contilent in full cash for $11.5 billion, with Contilent's debt, resulting in a total transaction value of $16.5 billion. As part of the transaction, Novo Nordisk will acquire three production bases of Contilent from Novo Holdings for $11 billion.
Zhou Fude explained that in the long run, Novo Nordisk will be able to more effectively utilize the production capacity of Contilent to increase supply, thereby making its weight loss drugs benefit more people. He also mentioned, "The demand is much greater than the production capacity we can provide today."
He also pointed out that Lilly's entry into the market has a positive side for Novo Nordisk, "If they (Lilly) can persuade companies to include obesity drugs in insurance, the benefits the company actually receives will be higher than the drawbacks brought by competitive threats."