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Mizuho healthcare equity strategist Jared Holz joins Julie Hyman and Josh Lipton on Market Domination to analyze the GLP-1 weight-loss drug market following Eli Lilly's (LLY) announcement of a substantial $27 billion investment in US manufacturing. Eli Lilly makes the weight-loss drugs Mounjaro and Zepbound.
Holz highlights two significant implications of this investment: first, it could boost domestic production capacity for these increasingly popular medications; second, it might "circumvent or alleviate any tariff issues" related to these drugs, potentially creating supply chain advantages.
Regarding consumer pricing, Holz says the "trajectory of these GLP-1s in terms of pricing is definitely down," noting Eli Lilly's ongoing efforts to improve patient affordability.
Despite potential price reductions, Holz emphasizes the medications' extensive benefits beyond weight loss, including improved cardiovascular health, reduced stroke risk, and anti-inflammatory effects. Given this, he argues the drugs remain "very, very cheap" at current price points when you "look at what the drug can do in totality."
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Holz predicts a pill form of GLP-1s could come to market by 2027.
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This post was written by Angel Smith