Anti obesity drugs can shrink more than patients
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Starry-eyed venture capitalists love to talk about how promising startups might capture a chunk of a giant total addressable market (TAM). This concept can also work in reverse, though. New anti-obesity drugs have the potential to transform public health, while obliterating demand for products and services from the medical, food and fitness industries. Think of them as total unaddressable markets (TUM).
Drugs developed by Novo Nordisk and Eli Lilly appear to be the first truly effective diet treatments. They work by targeting receptors in the brain that reduce appetite and help people feel fuller for longer. Originally developed to tackle diabetes, they’re gaining traction as treatments for obesity. In one clinical trial, patients taking Eli Lilly’s soon-to-be-launched weight-loss drug lost about 50 pounds (23 kg). The benefits for public health are potentially huge. In August, Novo said Wegovy, its obesity drug, reduced the incidence of serious cardiovascular events like strokes and heart attacks by 20% in overweight patients who have a history of heart disease but don’t have diabetes.
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