Shares in weight-loss jab firms Novo Nordisk (NVO) and Eli Lilly (LLY) looked a little thinner today as the World Health Organization (WHO) declared that 90% of people were missing out on jabs just like theirs because they are too expensive.
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Obesity Numbers are Growing
The WHO said that fewer than one in 10 people who could benefit from obesity jabs such as Novo’s Wegovy and Eli Lilly’s Mounjaro are able to get hold of them.
In its first guidance on the drugs, it called for more widespread and fairer access to weight-loss GLP-1 medication. More than one billion people worldwide are now classified as obese with forecasts that this will surge to over two billion by as soon as 2030 if no action is taken.
The WHO said that high costs, limited production capacity, and supply-chain constraints are the biggest barriers for people looking to shift significant weight.
WHO director-general Tedros Adhanom Ghebreyesus said: “Our new guidance recognises that obesity is a chronic disease that can be treated with comprehensive and lifelong care. While medication alone won’t solve this global health crisis, GLP-1 therapies can help millions overcome obesity and reduce its associated harms. Our greatest concern is equitable access.”
Voluntary Licensing is Needed
The WHO calls on countries and companies to expand access through strategies such as voluntary licensing, where a pharma company allows other drug makers to make affordable, non-branded versions of their patented drugs.
Novo’s patent on semaglutide, a key ingredient in Wegovy, is set to expire in a number of countries in 2026, including India, Brazil and China.
It’s partly why Novo is trying to diversify its crucial obesity category – see below. It recently paid $5.2 billion to buy Akero Therapeutics (AKRO).
Akero is working on an experimental liver disease drug called efruxifermin to tackle fibrosis and cirrhosis. The drug is being studied in patients with severe scarring or cirrhosis due to a type of fatty liver disease known as metabolic dysfunction-associated steatohepatitis (MASH).
Novo believes that will pair well with its expertise in diabetes and obesity. The need for help, as identified by the WHO, is clear to doctors, patients, and investors.
Is NVO a Good Stock to Buy Now?
On TipRanks, NVO has a Moderate Buy consensus based on 7 Buy, 2 Hold and 1 Sell ratings. Its highest price target is $70. NVO stock’s consensus price target is $58.18, implying a 19.37% upside.
