Obesity drug market expanding

The global market for novel weight-loss drugs like Novo Nordisk’s Ozempic and Wegovy is poised to reach $100 billion by 2035 as patients start to understand the efficacy of the medications.

That’s according to BMO Capital Markets analyst Evan David Seigerman, who, in a note to clients late Thursday, also said revenue for the medications could reach as high as $70 billion in the U.S. alone.

Wall Street’s appetite for all things related to weight loss has been on the rise after a study of Novo Nordisk’s Wegovy showed the medication reduced the risks of heart attacks and strokes.

The study results sent shares of drugmaker Eli Lilly soaring, and it remains the best-performing pharmaceutical stock so far this year in the S&P 500.

Seigerman sees Lilly as most poised to dominate the U.S. market into the 2030s. He said Lilly’s Mounjaro (tirzepatide) – already approved for diabetes – will anchor weight-loss treatments into the late 2030s if the drug gets approval for obesity by the end of the year.

Stocks struggle to end week

Treasuries rebounded and stocks struggled at the end of a jittery week that saw investors positioning for a higher-for-longer Federal Reserve stance.

Ten-year yields dropped after briefly topping 4.5% for the first time since 2007. The S&P 500 notched its worst week since March.

Tech, which bore the brunt of the recent rout, outperformed. Apple climbed as its latest iPhones and watches went on sale.

A gauge of U.S.-listed Chinese shares rallied on news Washington and Beijing are forming working groups to discuss economic and financial issues.

From wire reportsTraders are still very concerned about inflation and the path of policy amid the recent oil rally and the Fed’s signal that rates are not going to come down any time soon, according to Fawad Razaqzada, a market analyst at City Index and Forex.com.