In early 2023, the pharmaceutical industry’s attention was called to making weight loss drugs. Companies like multi-hundred billion dollar conglomerate Pfizer, Novo Nordisk, and Eli Lilly were all competing to make the best weight loss drug. But Why? By no means was this a new idea, with the first of its kind coming out in the late 1800s. The why partly has to do with the excitement in Wall Street. After all, these three companies are all publicly listed and are the three biggest in their industry; they have all said that the creation of diet pills is a huge opportunity. But why is it a huge opportunity? It comes down to the numbers in America. Over 40% of people are obese and can’t afford already-approved medicines that cost up to $1000 a month. Thus, the race for the affordable, effective diet pill begins.
History Of Diet Pills
With diet pills being such a hot topic today, it is important to understand where they came from. The first of its kind came in the late 1800s as a “fat reducer.” The pills were based on thyroid contact which was said to increase a person’s metabolic rate, thus burning more calories and more fat. However, these pills also came with serious side effects. Livestrong says, “The pills were thought to be an effective form of weight reduction. Unfortunately, the pills had unexpected side effects including abnormal heartbeats, increased heart rate, weakness, chest pains, high blood pressure, and even death” (Livestrong). This shows the flaws and awful side effects of these primitive weight loss drugs. Jump forward to the 1950s, amphetamines were popular to reduce appetite. The substance was formerly used as a stimulant for soldiers in World War II. However, adverse neurological and physical side effects along with abuse made them dangerous. Then came the late 20th century when Ephedra was invented. It was made from ephedrine and caffeine and was originally meant for treating asthma. The drug was then used for weight loss after new findings showed that it could help you lose weight. After a while the side effects became apparent and the FDA had to step in and take it off the market. In the 21st century, mostly herbal formulas went on the market. Also recently, a new technology in these drugs emerged that reduces the amount of dietary fat absorbed by the digestive tract.
Why are they making a surge in popularity today?
As one might have seen in the news, behemoths in the pharmaceutical industry like Novo Nordisk, Phizer, and Lilly have all been competing to produce the best weight loss drug. The big reason this is the case is because these companies found out that weight loss surgery costs too much to the consumer and efficient diet pills could be a cheaper alternative. These companies have also realized how big of a market this could be with 40% of individuals in the United States classified as obese according to a recent CNBC report. With this excitement of a large consumer audience and a lot of money to be made, it has also gained popularity in the financial markets. After Lilly expressed optimism about its weight loss drug, its stock price went up 15% and gained over 60 Billion in market cap in just one day.
The Average American Lifestyle
One of the reasons these diet pills are popular and are wanted is because of the average American’s lifestyle. According to CNBC, the average American spends two hours on social media per day, is 17 pounds overweight, watches 33 hours of TV per week, spends five hours a day on their cell phone, consumes 11 alcoholic drinks per week, and exercises only 17 minutes per day (CNBC). With all these bad habits it is safe to say that the reason why so many Americans are obese is because of lifestyle. It is so difficult to change one’s lifestyle that many people would want an easy fix by taking a pill that could reduce their weight.
Obesity in America is a big problem and major pharmaceutical companies are finding opportunities in the weight loss drug space. With recent findings, these diet pills could be a promising solution to the obesity problem that plagues many people in America. Also, the problem of obesity could be in the average lifestyle of Americans. Lastly, weight loss drugs have been a hot topic as of late and there are companies wanting to profit from them.
