In 2023, Danish pharmaceutical giant Novo Nordisk achieved a significant milestone, reporting record sales that propelled its valuation beyond USD 500 billion. This remarkable success was fuelled by the surging demand for its anti-obesity drugs, Ozempic and Wegovy, launched in 2021. By Q3 2024, sales of Wegovy soared 81% year-over-year, generating USD 2.5 billion, out-dieting one of its closest competitors, Eli Lilly’s Zepbound, which reported USD 1.3 billion in sales since its launch in December 2023. However, Novo Nordisk acknowledged supply chain challenges that constrained production, highlighting the hunger for these dress-size shrinking products.

Both Wegovy and Zepbound belong to a class of drugs that target gut hormones to promote fullness and reduce appetite through weekly injections. While commonly used as weight-loss treatments, these medications are primarily prescribed for managing Type 2 diabetes. Can you hear the commercial giants beating down the revenue door? - opening another extremely lucrative avenue, as “the weight loss market is much larger than the diabetes market,” commented a nutriologist at a Chilean health clinic.

The global obesity drug market is projected to reach USD 150 billion annually within a decade, driven by robust growth across regions like South America, which is valued at around USD 678 million in 2024 and expected to grow at a CAGR of 30.71% through 2031.“The most effective drugs worldwide, Wegovy (from Novo Nordisk) and Mountjaro (from Eli Lilly), have not been approved in Chile,” reported the nutriologist. “But both are expected to be approved during 2025.” Moreover, another weight loss specific drug from Novo Nordisk, Saxenda “has made a huge difference as it was approved for young people 2 years ago, thus increasing the potential market.”

“The most effective drugs worldwide, Wegovy (from Novo Nordisk) and Mountjaro (from Eli Lilly), have not been approved in Chile... but both are expected to be approved during 2025.”

Nutriologist for an obesity programme at a health clinic, Chile

An Argentinian doctor highlighted, “Wegovy has not yet been approved for sale in Argentina, and I honestly do not know whether this is due to regulatory or commercial reasons.” The source ruminated, “I believe the issue is not regulatory but rather stems from the company itself, driven by the high global demand for the drug and the inability to accommodate an additional market.”

Currently, “Brazil is the only country in the region that has approved Wegovy.” The obesity nutriologist continued, “In fact, there are patients from other countries who travel to Brazil, get the doses and then are treated in their home countries.” The nutriologist doesn’t believe the introduction of Wegovy in other Latin American countries, including those where Ozempic (1mg dose) is already in use, will be a significant game-changer. “In Chile, for instance, Wegovy’s dosage is expected to be much higher (4mg), which could limit its impact,” the source retorted.

“There are patients from other countries who travel to Brazil, get the [Wegovy] doses and then are treated in their home countries.”

Nutriologist for an obesity programme at a health clinic, Chile

Approximately 70-80% of Chile’s adult population is overweight, a figure mirrored in Mexico. Argentina, meanwhile, has experienced a rise in obesity rates, exacerbated by its prolonged economic crisis, with studies showing “Argentina as one of the Latin American countries with the highest levels of overweight children under 5 years of age,” informed the clinical doctor.

A well-established health framework in Argentina suggests that laboratories, such as Novo Nordisk, may have opportunities to closely examine the Argentine market. Perhaps it will come as a surprise that Novo Nordisk has actually been operating in Argentina for 25 years and is already a key player in the Argentine market.

Amid this fierce competition, Novo Nordisk is innovating further. Its experimental oral drug, Amycretin, showed promising results, helping participants lose 13% of their body weight in just three months. By stimulating both GLP-1 and amylin hormones, Amycretin represents a potential breakthrough in Novo Nordisk’s strategy to maintain its leadership in the obesity treatment sector. “It is a company that is growing strongly in the region and has very high sales targets.” The health clinic nutriologist cited, “Novo Nordisk lowered prices quite a lot in 2023 to attract people, but now the demand is such that prices are back to normal.”

Is this the miracle cure for all those waist-band-challenged individuals? Indeed, it seems to be for quick, effective results, but it is essential to emphasise the importance of developing public policies that encourage healthier consumption habits and lifestyles. “These medications should serve as a complement, not a standalone solution or a so-called ‘miracle cure’, as such miracles simply do not exist in this context.” The clinical doctor concluded, “Moreover, the risks associated with relying solely on these drugs are significant and should not be overlooked.” But for now, the pot of gold is overflowing for the weight loss companies at the end of their rainbow.