Elon Musk just dropped a weight loss bombshell. The Tesla (NASDAQ: TSLA ) and SpaceX CEO revealed on social media that he uses Eli Lilly and Co (NYSE: LLY )’s Mounjaro, calling himself in a tongue-in-cheek post Ozempic Santa. Musk’s support highlights surging demand for GLP-1 inhibitors, drugs originally developed to treat diabetes but now among the hottest drugs in weight loss treatments. Novo Nordisk (NYSE:NVO) and Lilly are leading the way, with the category expected to reach $150 billion in annual sales by 2033. The growing number of cheap licensed imitations could bring about destabilization.
Just last week, a Reuters investigation revealed a wave of counterfeits of semaglutide and tilsiparatide, hitting the market with looser patent rules. The price of these generic drugs is as low as $3 per month in Bangladesh compared to $935.77 in the United States. That’s a huge gap, and it’s not just a niche issue. With patents set to expire in places like China and India in 2026, time is running out for Novo and Eli Lilly to defend their turf. Although demand currently exceeds supply, experts warn that increasing competition could cause prices to fall faster than expected, especially in emerging markets.
For investors, this market is a double-edged sword. The growth story here is undeniable, with global obesity rates implying unprecedented demand, but profit pressure from cheap generics cannot be ignored either. Novo and Eli Lilly are ramping up production to maintain an edge, but the rules of the game are changing quickly. With more than 1 billion people worldwide classified as obese, it’s not just about profit, it’s about staying ahead of the curve in a market that’s redefining healthcare and potentially the future of your investment portfolio.
This article first appeared on GuruFocus.
