AstraZeneca, Novo Nordisk shares: anti-obesity drugs to lift companies that fill ‘skinny pens’

Which companies are likely to benefit from ‘fill-finish’ demand in the near-term? IGTV financial analyst Angeline Ong investigates.

(AI Video Summary)

Injection weight loss drugs market on the rise

The market for weight loss drugs that can be injected by oneself is growing rapidly. In fact, experts predict that this market could be worth an incredible $100 billion in the next ten years. Many big companies like Novo Nordisk, Eli Lilly & Co, AstraZeneca, Amgen, and Pfizer are all competing to provide these drugs.

One popular drug called Wegovy, created by Novo Nordisk, has been a hit since it was launched in the US in June 2021. It works by mimicking the appetite-suppressing hormones in the body. The interesting thing is that even though experts have warned about unknown risks and the high price of over $1,000 for a month's supply, people are still clamoring for these drugs. This high demand has even made it difficult for people with diabetes, who also need similar medications, to get the treatment they need.

Investing in "skinny pen" manufacturers

Now, here's where the investment opportunity comes in. Instead of investing in the companies that make the drugs themselves, you can consider investing in the companies that manufacture the injection pens used for these weight loss drugs. These portable devices, known as "skinny pens," are essential for administering the medication. The major drug manufacturers are struggling to keep up with the demand for these pens, as it requires a specialized process to fill them with the medication in sterile conditions.

That's where companies like Catalent and Thermo Fisher Scientific come in. They specialise in the process of filling these pens, which is called fill finish work. They can step in and bridge the gap in capacity until the big drug makers can establish their own facilities for fill finish work.

Investing in these companies that provide fill finish services could be a less risky option for those interested in the booming weight loss drug market. By putting your money into these companies, you are tapping into a crucial part of the supply chain and taking advantage of the growing demand for self-injection weight loss drugs.