Skip to content
Search

What if GLP-1 drugs disrupt your favourite takeaway?

New diabetes and obesity drugs are having a disruptive impact, not just across health care but also a range of other sectors and industries.

The game-changing potential of GLP-1 drugs

The introduction of GLP-1s could revolutionise health care. These drugs are not only effective in treating obesity but also have the potential to combat over 200 related diseases, promising significant long-term health savings and improved patient outcomes.

Beyond diabetes and obesity

While GLP-1 receptors are concentrated in the pancreas, evidence is growing that GLP-1 drugs can interact directly with GLP-1 receptors found in other organs.

Brain

May reduce alcohol cravings, and early evidence suggests a possible role in avoiding neurodegenerative diseases such as Alzheimer's and Parkinson's.

Liver

May reduce fat buildup in those with fatty liver disease.

Lungs        

May reduce inflammation in the lungs and other organs, although it's unclear how much of this is due to weight loss.

Kidneys

May preserve kidney function in those with chronic kidney disease.

Heart

May reduce inflammation in the heart and circulatory system.

Intestines

May speed the breakdown of fat cells to produce energy.

Will GLP-1s become the largest class of drugs in history?

The ripple effects of GLP-1s

We believe we were early in understanding the promise of GLP-1s, below are just some of the ways GLP-1s have the potential to impact various sectors beyond healthcare.

Food and beverage

GLP-1s could shift consumer preferences towards healthier choices, impacting fast food and snack industries. Alcohol consumption may also decline as these drugs help combat addictive behaviours.

Insurance

Improved health outcomes could lower healthcare costs and claims, influencing health insurance premiums and policies.

Surgery

The demand for bariatric surgery may decrease, while eligibility for knee and hip surgeries could increase as patients achieve healthier weight.

Productivity and workforce

Healthier populations could lead to enhanced productivity, reduced absenteeism, and lower healthcare costs for employers, benefiting the overall economy.

Environment

Reduced food consumption and waste could positively impact sustainability goals and reduce the carbon footprint of food production and distribution.

Dive deeper into health care innovation

Feb 2024 · GLOBAL EQUITIES

New diabetes and obesity drugs show promise for patients and investors

GLP-1 treatments are poised to reshape the health care sector.

By  Nabil Hanano, Jeffrey Holford
Jul 2024 · EQUITY

Finding the key to unlocking a US$200 billion opportunity

Company research tour: Eli Lilly

By  Nabil Hanano, Jeffrey Holford
Coming soon · ESG

The food trilemma

The piece discusses how anti-obesity medications such as GLP-1s could play an unquestionable long-term role in resolving the food trilemma.

Coming soon · ANALYST INSIGHT

How AI is revolutionising drug development

Large language models are learning to speak the language of biology and are being deployed in developing new drugs, both small molecule and biologics.

Coming soon · ANALYST INSIGHT

Are GLP-1 drugs the death knell for medical devices?

Device companies have been downgraded on lower future earnings expectations. This looks overdone.

Be the first to know when the next health care article is released. 

Sign up for the monthly UNCOVER newsletter to receive expert insights on the megatrends shaping our world.

How to get exposure to health care

Our approach to investing is truly global. With one of the most extensive and experienced buy-side global research engines in the industry, our investment teams discover investment opportunities you can be confident in.

T. Rowe Price Concentrated Global Equity Fund

A high conviction global equity portfolio that seeks to thrive in all market environments without favouring any one style of investing.

T. Rowe Price Global Impact Equity Fund

A dual mandate fund that pursues stocks with clear impact and financial return markers to deliver long-term capital appreciation. 

T. Rowe Price Global Equity Fund

A truly global equity portfolio targeting companies from developed, emerging and frontier markets.

All information is as at 31 March 2024, unless specified.

Important Information

Equity Trustees Limited (“Equity Trustees”) (ABN: 46 004 031 298, AFSL: 240975) is a subsidiary of EQT Holdings Limited (ABN: 22 607 797 615), a publicly listed company on the Australian Stock Exchange (ASX:EQT). Equity Trustees and T. Rowe Price Australia Limited ("TRPAU") (ABN: 13 620 668 895, AFSL: 503741) are, respectively, the responsible entity and investment manager of the T. Rowe Price Australian Unit Trusts. Available in Australia for Wholesale Clients only.

A Target Market Determination for each T. Rowe Price Australian Unit Trust (or class of units in a Trust) is available here (www.eqt.com.au/insto). It describes who the financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where Equity Trustees Limited, the responsible entity of the T. Rowe Price Australian Unit Trusts may need to review the Target Market Determination for the financial product.

Past performance is not a reliable indicator of future performance. The price of any fund may go up or down. Investment involves risk including a possible loss to the principal amount invested. For general information purposes only, does not take into account the investment objectives, financial situation or needs of any particular investor. For further details, please refer to each fund's product disclosure statement and reference guide which are available from Equity Trustees (www.eqt.com.au/insto) or TRPAU (www.troweprice.com.au).

202407-3661038