Analysts said blockbuster weight loss drugs like Wegovy are minimally profitable for retailers like Walmart – and may even come with slight margin headwinds.
, are developing their own GLP-1s in a bid to capitalize on a weight loss drug market that some analysts project could be worth $200 billion by 2030. An estimated 40% of U.S. adults are obese, making successful treatments a massive opportunity for drugmakers.
He said those drugs have high sales amounts per prescription, but emphasized that the increased volume of GLP-1s has a"minimal impact" on Rite Aid's gross profit. That's because GLP-1s like Wegovy and Ozempic are branded drugs with"very, very low gross margins," according to CFRA Research's Sundaram. In contrast, gross margins for generic drugs – the cheaper equivalents of branded medications – are 42.7% on average for pharmacies.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Almost 100 Million Americans Eligible For New Weight Loss DrugA diabetes drug distributed under the brand name Wegovy could offer a suitable and beneficial weight loss treatment for some 93 million adults in the US, according to a new study.
Read more »
This week in tech: Analysts sweet on Nvidia; Tesla cuts prices again By Investing.comThis week in tech: Analysts sweet on Nvidia; Tesla cuts prices again
Read more »
Here's the trade on Nvidia ahead of earnings, according to analystsAhead of earnings Wednesday, analysts are weighing in on the forthcoming report and how to trade the earnings.
Read more »
Top Wall Street analysts pound the table on these 5 stocksTipRanks’ analyst ranking service pinpoints Wall Street’s best-performing stocks, including Amazon and Netflix.
Read more »
Crypto Analysts Split on Why Ether Outperformed Bitcoin During Last Week's SlideThe ether-bitcoin ratio rose more than 2% past week. The gain is inconsistent with its record of taking losses during bouts of risk aversion.
Read more »
Wall Street analysts take opposite views on Insulet following share price decline By Investing.comWall Street analysts take opposite views on Insulet following share price decline
Read more »