Benzinga - by Vandana Singh, Benzinga Editor.
Goldman Sachs economists foresee a potential 1% boost to the United States’ Gross Domestic Product (GDP) in the coming years, attributing this surge to the widespread use of weight-loss drugs.
These drugs, known as GLP-1 agonists, are under intense pursuit by various companies, and the market is expected to expand, with the possibility of reaching $100 billion annually by the decade’s end.
Leading the race are Novo Nordisk A/S (NYSE:NVO), the creator of Ozempic, and Eli Lilly (LLY.N), the producer of Mounjaro, Reuters reports.
Citing analysts’ projections, Reuters highlights a significant increase in GLP-1 usage, ranging from 10 to 70 million consumers by 2028, potentially reducing obesity-related complications and enhancing workplace efficiency.
Also Read: Weight Loss Drugs Like Wegovy Would Not Impact Business – Healthcare Companies Tell Investors.
The economic implications are substantial, as Reuters notes that Goldman Sachs estimates a 0.4% to 1% GDP boost in scenarios with 30 million to 60 million users.
Academic studies supporting these projections highlight the correlation between obesity, decreased work likelihood, and productivity.
Recognizing the broader impact, Goldman Sachs emphasizes that the current wave of healthcare innovation, including AI-powered drug discovery combined with GLP-1s, could elevate U.S. GDP by 1.3%.
This translates to $360 billion annually at current exchange rates, with a potential increase ranging from 0.6% to 3.2%.
The firm notes that the effects will be more pronounced in the U.S. due to better health outcomes in other developed markets.
In November, Speakers at an event highlighted the impact of a new class of weight loss drugs, including substance abuse, on the U.S. healthcare system. Reuters emphasized the groundbreaking potential of these drugs, not only for obesity but also in controlling addiction-related conditions.
Read Next: Obesity Medication Insurance Coverage? Employers Embrace the Inclusion of Novo Nordisk’s Wegovy in Health Coverage.
Image By Natalia Varlei On Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.