Investing.com — As indicators emerge that demand for GLP-1 medication is stronger than anticipated, many are fearing the worst for packaged-food firms, however Bernstein believes that some firms are more likely to fare higher than others as sufferers on these weight-loss medication shift urge for food in favor of extra protein-based meals.
“Whereas we can not categorically decide how massive the compounding market is for GLP-1 medication within the U.S. immediately, there are a number of indicators that recommend the market could also be bigger than we beforehand thought,” analysts at Bernstein mentioned in a Thursday be aware.
Whereas official knowledge from IQVIA suggests solely about 1.4% of U.S. adults are presently taking branded GLP-1 medication like Ozempic and Wegovy, there are indicators that demand is stronger than anticipated/
Survey knowledge signifies that as a lot as 12% to 13% of U.S. adults have taken or are presently taking GLP-1 medication, analysts at Bernstein mentioned, with roughly 8% presently utilizing them for both diabetes or weight reduction.
This discrepancy between the survey and IQVIA knowledge level to a probably bigger marketplace for compounded GLP-1 medication than beforehand thought.
Proof means that compounding pharmacies, which create custom-made medicines for particular person sufferers primarily based on prescriptions and may produce variations of sure medication throughout shortages, might be “reaching a bigger variety of GLP-1 sufferers than are captured within the official branded drug knowledge.”
Whereas the indicators of elevated demand are anticipated to dent urge for food for packaged meals, Bernstein believes that some firms similar to Campbell Soup Firm (NYSE:) may fare higher than others as GLP-1 sufferers are proven to have an elevated urge for food for protein-based meals.
Bernstein upgraded Campbell Soup Firm (NYSE:) from Market-Carry out to Outperform, and its worth goal raised from $55 to $58 as proof exhibits that GLP-1 customers favor extra protein wealthy meals and drinks.
Hershey Co (NYSE:), nonetheless, was downgraded from Outperform to Market-Carry out and its goal worth minimize from $230 to $205 on worries quantity restoration will wrestle as GLP-1 demand seems to be on the up and up.
