GLP-1 Drugs Are About To Unleash a Gold Rush for Cosmetic Procedures, Benefiting Evolus (EOLS), Inmode (INMD), and AbbVie (ABBV) Shares

The author is not providing investment advice and does not hold any positions in the mentioned stocks.

Despite the initial gold rush surrounding GLP-1 weight loss drugs in 2022/2023, many investors failed to take advantage. Fortunately, there is now a chance to benefit from the positive effects of these drugs through investing in companies that specialize in cosmetic/aesthetic procedures, such as Evolus (NASDAQ: EOLS), Inmode (NASDAQ: INMD), and AbbVie (NYSE: ABBV).

Understanding GLP-1 Weight Loss Medications

GLP-1 drugs, currently available in injectable form, are effective in promoting weight loss by reducing appetite and controlling insulin and glucose levels.

Novo Nordisk markets injectable drugs under the labels Ozempic and Wegovy, which both contain Semaglutide as a proprietary GLP-1 agonist. Ozempic is aimed at treating type-2 diabetes, while Wegovy is marketed as a treatment for obesity.

Just like Eli Lilly and Company, which currently markets Tirzepatide as one of its exclusive anti-obesity medications, the drug combines GLP-1 and GIP agonists to provide improved effectiveness. Tirzepatide is sold by Eli Lilly in injectable forms, under the brand names Mounjaro for diabetes and Zepbound for obesity treatment.

To clarify for those who may not know, an agonist is a substance that imitates the effects of a neurotransmitter or hormone by binding to a specific receptor in the brain and producing a reaction.

The industry is currently testing various combination weight loss medications. An example is Viking Therapeutics’ VK2735, a dual agonist that utilizes the effects of both GLP-1 and GIP.

Similarly, there has been a lot of excitement in the market about Eli Lilly and Company’s injectable Retatutide offering. This drug effectively targets three different hunger-regulating hormones – GLP-1, GIP, and Glucagon – to provide improved efficacy.

Additionally, there are weight loss medications that are not classified as GLP-1 drugs, such as Zealand’s Amylin. These medications function by solely increasing the sensation of fullness, ultimately leading to a decrease in food consumption and subsequent weight loss.

The latest development from Novo Nordisk involved the release of the phase 1 clinical trial findings for their drug candidate, Amycretin. This oral medication combines the GLP-1 agonist with Amylin and has shown promising results in promoting weight loss, with an average of 13.1 percent of body weight lost after only 12 weeks of treatment. This new drug is expected to play a crucial role in Novo Nordisk’s future endeavors in the field of weight loss medications.

The Growing Intersection of GLP-1 Drugs and Cosmetic Procedures

GLP-1 drugs are creating both positive and negative impacts on the economy. For instance, in 2023, the pharmaceutical industry in Denmark single-handedly prevented the country’s economy from shrinking due to the high demand for these anti-obesity medications.

Some financial analysts have begun to lower their long-term demand forecast for major fast food companies like McDonald’s, citing predictions that approximately 7 percent of the US population will be taking GLP-1 drugs in the next decade. This could potentially lead to a 20 percent decrease in the average caloric intake of these individuals.

High end Restaurants seeing less buying as well. Client in the space said check sizes are down as people order less stuff…. Sounds like money to be spent elsewhere https://t.co/5fvb7A25Cz

— Allbullnobear (@allbullnobear8) February 20, 2024

High-end restaurants are already experiencing a decrease in business, which is expected due to the expensive retail price of GLP-1 drugs and their lack of insurance coverage. As a result, these drugs are more commonly used by those who can afford them, such as the affluent population.

In a recent survey (done by Needham) of users of GLP-1 drugs, 62% of the respondents said they are now more likely to get aesthetic/cosmetic procedures (to help with skin tightening) and/or begin using injectables like Botox and $EOLS Jeuveau as well as fillers to help with…

— Jonah Lupton (@JonahLupton) March 18, 2024

It has been observed that the GLP-1 drugs are now gaining momentum in the aesthetic/cosmetic surgery industry. According to a recent survey conducted by Needham, a staggering 62 percent of participants expressed their interest in undergoing cosmetic procedures like skin tightening, Botox, and injectable fillers to enhance their appearance after successfully losing a considerable amount of weight with the help of GLP-1 drugs.

👀 Love this kind of thinking.

Similar to buying Zoom stock during COVID https://t.co/teBW59DxkS

— BowTiedBiotech 🧪🔬🧬 (@BowTiedBiotech) March 18, 2024

This growing trend towards investing in the beauty industry is expected to have a positive impact on companies like Evolus, which produces injectable fillers, Inmode, which offers body toning services, and AbbVie, the manufacturer of Botox. This is similar to the strategy used by savvy investors during the COVID-19 pandemic, where they invested heavily in Zoom.