What: Ozempic is a new diet drug that will disrupt many industries, including retail.

Why it is important: It is extremely rare that new drugs have such a disruptive potential. In retail, it might affect many factors, from size grids to menus in restautant, or the notion of health itself.

A recent medical presentation in Philadelphia revealed that Wegovy, a new weight-loss medication, significantly reduces the risk of death from heart attack or stroke by 20%. This drug, along with its cousin Ozempic, belongs to the "semaglutides" class which slows digestion and mimics natural appetite-reducing hormones. These drugs, first commercialized by NovoNordisk, have gained immense popularity, leading to a 300% increase in prescriptions in the US since 2020. They are expensive, yet Bank of America predicts that 48 million Americans will be using them by 2030.

Their impact goes beyond healthcare. The pharmaceutical industry is seeing significant shifts, with companies like Novo Nordisk and Eli Lilly thriving due to their semaglutide offerings, while others without such products are facing challenges. The drugs are disrupting markets beyond pharmaceuticals, including fast food, insurance, and health and fitness industries. For instance, companies like Krispy Kreme are being downgraded due to reduced consumption of sweet treats among semaglutide users

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The broader implications for the US healthcare system are significant. While semaglutides are costly, they could potentially reduce overall healthcare costs by lessening obesity-related conditions like kidney failure and heart disease. However, their long-term health effects remain unknown, and they do not address underlying causes of American obesity, such as lifestyle and dietary habits. Despite these uncertainties, semaglutides are transforming both economic and health landscapes in the US.

Behold the Ozempics business