Analysis of the Obesity Drug Markets in the US and EU: Obesity Research Update #5

jlo Analysis of the Obesity Drug Markets in the US and EU: Obesity Research Update #5

Q:

  • Which business sector saw it’s sales triple in 2007, and
  • Expects sales to increase at an even greater rate, and
  • Has a target market that is literally getting bigger day by day, and
  • Whose customers keeps buying their product even when they have be proven ineffective???

A:

  • The Obesity Drug Business

According to this research paper:

- An estimated 17% (85m people) of the EU population are obese and a further 32% (160 million people) are overweight. The average rate of obesity in the US is forecast to reach 40% by 2010.

- US sales of obesity drugs more than tripled in 2007 to reach $421m following the introduction of Alli, which accounted for 71% of total revenue. Strong support from GlaxoSmithKline will stimulate further expansion for Alli in both the US and EU.

- The majority of weight loss products currently marketed have proven to be ineffective, with only a small proportion of consumers having been able to achieve and maintain weight loss.

- The US and European obesity drug markets will expand at a combined CAGR of 23.3% between 2008-2012. This growth will be driven by the launch of several products currently in late stage development, and increase revenues to an estimated $3.1b by 2012.

- A large number of novel obesity medications are currently under development, many of which represent novel approaches to the treatment of obesity and new drug classes such as CB1 antagonists and serotonin receptor agonists.

Non-prescription drug availability has reinvigorated the US market for obesity treatments. (see Allis switch from Rx to OTC usage in 2007) GlaxoSmithKline is currently pursuing a similar switch in Europe with approval expected during 2009 at the latest.

But even in this golden age of obesity, not everything is turning up roses for Big Pharma.

Heightened regulatory scrutiny, particularly at the FDA, is causing approval delays and denials for all drug candidates. Sanofi-Aventiss new obesity drug, Acomplia, is widely available outside the US but was rejected by the FDA on safety concerns.

Damn those watchdogs.

So what if a few people grew a third arm out of the side of their necks.

We’ve got fat people to skinnify!


If you are interested in a better way to eat, click here or here or here.

Thanks.

Doug Robb is a personal trainer, a fitness blogger and author, a competitive athlete, a social media nerd and a student of nutrition and exercise science. Since 2008, Doug has brought his real-world experience online via his health & fitness blog, Health Habits.

5 Comments

  1. Steve Parker, M.D.

    July 29, 2008 at 4:20 pm

    I still believe the FDA wouldn’t have approved their weight-loss pills unless proven “safe and effective.” That’s in their charter. They jerked Redux from the market when it appeared to cause serious heart valve problems.

    The problem is, the pills are only mildly effective, with average weight losses of 5-10 pounds. And most users regain weight after stopping the drugs.

    It’s a little over the top to say the FDA-approved drugs are “proven ineffective.”

    Nevertheless, I greatly enjoy your blog! Well-written and amusing.

    -Steve

  2. DR

    July 29, 2008 at 4:35 pm

    I don’t want to get into the whole safe and effective debate – pharmaceuticals kill a LOT of people every day, but in regards to the “proven effective” quote…it came straight from the report.

    I could not believe it when I read it.

    I had to go back and read it again.

    Here it is.

    Some key findings from this report

    * An estimated 17% (85m people) of the EU population are obese and a further 32% (160m people) are overweight. The average rate of obesity in the US is forecast to reach 40% by 2010.

    * US sales of obesity drugs more than tripled in 2007 to reach $421m following the introduction of Alli, which accounted for 71% of total revenue. Strong support from GlaxoSmithKline will stimulate further expansion for Alli in both the US and EU.

    * The majority of weight loss products currently marketed have proven to be ineffective, with only a small proportion of consumers having been able to achieve and maintain weight loss.

    * The US and European obesity drug markets will expand at a combined CAGR of 23.3% between 2008-2012. This growth will be driven by the launch of several products currently in late stage development, and increase revenues to an estimated $3.1b by 2012.

    * A large number of novel obesity medications are currently under development, many of which represent novel approaches to the treatment of obesity and new drug classes such as CB1 antagonists and serotonin receptor agonists.

    Here is a link with a bit more info
    http://www.marketresearch.com/product/display.asp?productid=1819219&g=1

  3. bentlyr

    July 29, 2008 at 11:48 am

    Getting fit isn’t easy… People seem to think there’s an easy solution or at least that there should be.

    Exercise has been and will continue to be the only 100% truly effective way to lose weight and keep it off. The sooner people realize this, the sooner we’ll see a trend against obesity.

  4. AndrewE

    July 28, 2008 at 9:00 pm

    Heh…getting healthy won’t come from a pill.

  5. crazygina

    July 28, 2008 at 8:07 pm

    I really like your blog. This is another good one!!