In a period increasingly driven by technology and the pursuit of better health outcomes, innovation in weight loss drugs and Generative Artificial Intelligence (GenAI) have emerged as two promising avenues to address some of the most pressing issues facing society today. As GenAI progresses alongside innovations in weight loss drugs, we are going through one of the fastest evolutions in lifestyle changes seen in modern times. While they may seem unrelated, a close examination reveals a common thread and the potential for synergies between these two fields.
Historically, pharmaceutical companies have invested heavily in weight loss drug development with mixed results as they often come with undesirable side effects, limited efficacy, and are only prescribed in specific cases. However, innovation in the field of weight loss drugs has led to the development of novel compounds that are having success either curbing appetite, increasing metabolism, or reducing fat absorption. Some of the newest diet drug therapies have shown promise not only in reducing obesity, but potentially protecting against heart disease, stroke, alcohol dependency, and perhaps even kidney disease. For those who have not already taken the visual journey, type in “Ozempic before and after” in a search engine to see the celebrity transformations.
The expanding list of next generation branded weight loss drugs, including Ozempic, Wegovy, and Mounjaro, belong to a class of drugs called glucagon-like peptide-1 receptor agonists (shortened to GLP-1 agonists) initially used as type-2 diabetes medication. For diabetes patients, and for those who truly have difficulty shedding body weight, the GLP-1 drugs are said to be a game changer. Although there are questions behind the drug mechanism, the intention is to help manage blood sugar with a side effect of suppressing appetite, often resulting in weight loss. One other side effect is that these weekly injectable drugs drain your bank account by up to $1,000 per month in the U.S. for those without discounts, coupons, or insurance coverage.
Just as users might need to stay on the GLP-1 drugs to keep weight off, the GenAI movement is also life altering. GenAI’s many uses includes enhancing idea generation, helping complete work assignments and writing computer code. GenAI utilization will be integrated into pharmaceutical development to analyze vast datasets and identify correlations, trends, and potential drug candidates. Furthermore, GenAI could assist in an optimization of personalized healthcare by considering individuals’ preferences, genetic factors, and lifestyle choices. Whereas weight loss drugs have typically offered a one-large-size-fits-all approach, GenAI has the potential to create personalized weight loss plans by considering an individual’s unique genetic profile, dietary restrictions, and health history.
Safety is a critical factor in pharmaceutical research and GenAI might be able to expedite the drug discovery process by simulating the interactions of potential drugs with human biology, ideally identifying potential safety concerns early on. GenAI could also help individuals maintain an optimum weight by continually adapting and refining their weight management regime based on real-time data via a feedback loop.
GenAI is a nascent technology with evolving paths to investment. As it relates to the new diet drugs, we think they might need the test of time (and lower pricing) to warrant the recent hype given weight loss drugs have historically shown limited long-term sustainability. If GLP-1 headlines turn negative (due to an emergence of concerning side effects), the downward pressure on the related drug stocks could be hard to swallow. Nonetheless, rapid innovation in both technology and healthcare has the potential to significantly change the world as we know it, and numerous investment opportunities are likely to continue to emerge.
Sources: CNBC, Reuters
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