Elon Musk just dropped a weight-loss bombshell. The Tesla (NASDAQ:TSLA) and SpaceX CEO took to social media, revealing he uses Eli Lilly’s (NYSE:LLY) Mounjaro, calling himself Ozempic Santa in a tongue-in-cheek post. Musk’s endorsement highlights the skyrocketing demand for GLP-1 inhibitors, drugs originally meant for diabetes but now the hottest ticket in weight-loss treatments. Novo Nordisk (NYSE:NVO) and Lilly are leading the pack, with annual sales in the category projected to hit $150 billion by 2033. But here’s the twist: a growing tide of cheaper, licensed copies from countries like Bangladesh and Russia could shake things up for these pharma giants.
Just last week, a Reuters investigation revealed a rising wave of semaglutide and tirzepatide knock-offs hitting markets with looser patent rules. These generics are no jokepriced as low as $3 per month in Bangladesh, compared to $935.77 in the U.S. That’s a massive gap, and it’s not just a niche issue. With patents expiring in places like China and India by 2026, the clock is ticking for Novo and Lilly to defend their turf. While demand currently outpaces supply, experts warn that growing competition could push prices down faster than expected, especially in emerging markets.
For investors, this market is a double-edged sword. The growth story here is undeniableglobal obesity rates mean unprecedented demandbut margin pressures from cheap generics can’t be ignored. Novo and Lilly are ramping up production to maintain their edge, but the game is shifting fast. With over a billion people globally classified as obese, this isn’t just about profitsit’s about staying ahead in a market that’s redefining the future of healthcare and, potentially, your portfolio.
This article first appeared on GuruFocus.
