#finance, #stocks, #inflation As GLP-1 weight-loss drugs have boosted several healthcare stocks, Jennison Associates Head of Global Equity Mark Baribeau joins Market Domination Overtime to discuss whether these companies can keep up the momentum. Baribeau points to Novo Nordisk (NVO) and Eli Lilly (LLY) as companies seeing major revenue growth and likely to split the market. He sees weight-loss and type 2 diabetes drugs as a "paradigm shift" that present huge opportunities for both companies. However, he notes that while consumer demand for these drugs is skyrocketing, Novo Nordisk and Eli Lilly "don't have the manufacturing capacity to keep up with demand. So the gating factor here is really supply. It's not demand." He adds that as manufacturing capacities expand, growth will accelerate, making the industry's backdrop look "very, very healthy.
Let's talk about another large addressable market,
but this time in healthcare,
and we're talking about being overweight and also diabetes.
We've seen Novo Nordisk, we've seen Eli Lilly surge
in various fits and starts,
but this seems like we're still in the opening innings here.
Where do you see these companies going?
Where do you see the whole movement going?
Well, I mean, the numbers are staggering.
The consensus revenue estimates,
I think for Novo Nordisk,
I believe are $50 billion by 2027.
And for Lilly and Nordisk, by 2030,
the industry could be at $100 billion.
That's the revenue estimates you see
emerging now as a consensus.
So these weight loss and type two diabetes treatment drugs
are a paradigm shift,
and two companies are gonna largely split that market.
So it's a huge, huge opportunity.
And what we've seen so far
is good revenue growth from both companies,
but very constrained
because they don't have the manufacturing capacity
to keep up with demand.
So the gating factor here is really supply, it's not demand.
The consumer demand is off the charts.
These really are consumer products.
They make some very unique in healthcare
versus something you would take to treat
high blood pressure or cancer
or something very serious like that.
These are consumer products.
So they do have enormous potential.
And as manufacturing capacity comes online,
you'll see revenue growth continue to accelerate.
So that's the backdrop for that industry.
It looks very, very healthy.
