Maunjaro and Zepbound are expected to reach $5.3 billion in sales in 2023. Image: Bloomberg/Contributor (Getty Images)
David Ricks, CEO of Eli Lilly, maker of Maunjaro and Zepbound, says food, diet and fitness companies are seeking his advice about the growing popularity of his company’s diabetes and weight-loss drugs.
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In an interview with The Wall Street Journal, Ricks said he advises these companies that they need to adapt to a less obese world.
Xepbound and Maunjaro belong to a class of diabetes and obesity drugs called GLP-1, which also includes Novo Nordisk’s Ozempic. Demand for appetite suppressants has soared over the past few years.
Sales of Maunjaro and Zepbound are expected to hit $5.3 billion in 2023 and continue to soar this year. Unrelenting demand for GLP-1 drugs has led to ongoing shortages, and the pharmaceutical giant is spending billions of dollars to build new facilities to meet demand.
Morgan Stanley analysts expect the global market for GLP-1 to reach $105 billion by 2030, up from a previous forecast of $77 billion. The investment bank also predicts that adoption of these drugs will reach about 31.5 million people in the United States by 2035, or about 9% of the nation’s population. Additionally, analysts expect weight-loss drugs to help revitalize the fitness industry and reshape the food sector.
Walmart U.S. CEO John Furner said the company has already noticed a shift in consumer behavior, and it’s due to pharmaceuticals: Consumers are buying less than the general population, he told Bloomberg in October.
Ricks said he has had conversations with Walmart and other large grocers, telling them they should adjust if they’re afraid of declining sales.
“If they’re concerned about salty snack foods that are high in fat and saturated fat, or they’re not selling well, I would say, ‘Why not make a healthier snack food?'” Ricks says.
