The new generation of anti-obesity drugs—originally formulated to treat type 2 diabetes—has gone from social media platforms like TikTok to the headlines of business publications. Products like Ozempic, Wegovy, and Saxenda are coveted by millions of people seeking an easy way to lose weight, despite their high price (US$1,400 per month in the U.S. for Wegovy).

These medications work by mimicking the effects of the hormone GLP-1, which is naturally released after eating and acts on the brain to reduce feelings of hunger and increase feelings of fullness. Their use in diabetic patients has established a track record of safety. In addition to cost, another issue is that, according to studies conducted to date, they must be used long-term to prevent weight regain.

The popularity of these drugs is having an impact on the economy, beyond the increase in sales volume—sales are estimated to have grown by 300% between 2020 and 2022—and the rise in the stock prices of pharmaceutical companies—the share price of Novo Nordisk, one of the leading manufacturers, rose from about US$23 in November 2018 to US$93 in October 2023—. Walmart, which monitors its customers’ consumption habits, has noted a slight decline in food and calorie sales at its supermarkets in the United States. According to Bloomberg, a few weeks ago the CEO of Kellanova, the manufacturer of Pringles and Cheez-Its snacks, noted that the company is studying the impact of the growing use of these medications on its business.

However, it's not all bad news for these companies. In an interview with CNBC, Walmart's chief financial officer noted that people who take these medications tend to spend more at their stores, even if they buy less food.