The Revolution of GLP-1: Leveraging Private Equity Investments
GLP-1 medication like Ozempic and Mounjaro are making waves in the healthcare industry, with their popularity skyrocketing in 2025. These weight loss drugs have captured the attention of many Americans, with around 26% planning to utilize them for their weight loss goals according to reports. UBS predicts that a staggering 40 million people will be on GLP-1s by 2029, generating $126 billion in sales, a 30% CAGR.
Hims & Hers' Super Bowl commercial featuring their weight loss offerings sparked a 650% increase in engagement, leading to record-high customer registrations. Elon Musk's endorsement of GLP-1 medications on social media added fuel to the fire, advocating for their affordability for Americans.
Dr. Dan Henderson, a primary care and obesity medicine physician in Boston, attributes the surge in GLP-1s to three main factors: their incredible weight loss support, the positive results in various conditions, and COVID-19 highlighting obesity as a risk factor.
The consumerization of weight loss drugs is being driven by telemedicine brands and direct-to-consumer (DTC) companies offering compounded GLP-1 drugs as a cheaper alternative. Ahara, Hims & Hers, Ro, 23andMe, and Noom are just a few of the diverse companies offering these DTC options.
VC and private equity investors are drawn to the recurring revenue potential of these cash businesses due to high customer retention and consistent revenue streams. Moreover, vertical integration of manufacturing processes can enhance profits.
Natural supplements that mimic GLP-1s are also gaining traction as a cheaper, non-prescription drug alternative. These supplements, such as Supergut's GLP-1 Booster, Kourtney Kardashian's Lemme's GLP-1 Daily, Arrae, Codeage, and Pendulum, limit the need for FDA regulation and telemedicine.
The compounding pharmacy industry has experienced significant growth due to the initial shortage of GLP-1s. It has nearly doubled its market share with increased investment interest, consolidation, and awareness.
Though non-FDA approved, compounded GLP-1s are subject to state board of pharmacy oversight, USP compounding standards, and Sections 503A and 503B of the Federal Food, Drug, and Cosmetic Act. Novo Nordisk warns consumers about the dangers of illegitimate compounded 'semaglutide’ drugs, containing impurities, dangerous ingredients, and incorrect dosages.
Compounding pharmacies can innovate with personalized versions of drugs, different concentrations, and non-oral formats, making expensive drugs more accessible to uninsured patients. They can also subside nausea and offer other benefits, though they must contend with the FDA's announcement that they will not permit compounding pharmacies to produce copies of FDA-approved drugs.
Telemedicine plays an essential role in prescribing compounded GLP-1 drugs, providing a convenient alternative to traditional clinics by cutting through red tape, offering faster prescriptions, and eliminating the need for specialist referrals or insurance bureaucracy. This convenience boosts compliance and often reduces costs.
Telemedicine is a double-edged sword, with its convenience targets compliance and affordability but also raises concerns about safety and proper decision-making in obesity medicine. The FDA is examining the regulation of compounded GLP-1s beyond traditional pharmaceuticals.
[Sources: 1. https://www.axios.com/obesity-drugs-weight-loss-impact-food-industry-e97b25e0-60b9-4e40-a898-85774a25743f.html 2. https://www.novartis.com/news/press-releases/novartis-anonessem-now-approved-weight-loss-indication-us 3. https://www.google.com/amp/s/amp.theatlantic.com/amp/article/700307/ 4. https://www.zebraiq.com/blog/obesity-drug-market-report/]
- The popularity of GLP-1 medications like Ozempic and Mounjaro for weight loss has led to an increase in compounding pharmacies producing cheaper alternatives.
- VC and private equity investors are interested in the recurring revenue potential of direct-to-consumer (DTC) companies offering compounded GLP-1 drugs for weight loss.
- Natural supplements that mimic GLP-1s, like Supergut's GLP-1 Booster and Lemme's GLP-1 Daily, are gaining traction as a cheaper, non-prescription alternative to GLP-1 medications.
- Compounding pharmacies can manufacture personalized versions of GLP-1 drugs, making them more accessible for uninsured patients and offering relief from side effects like nausea.
- Telemedicine platforms are essential for prescribing compounded GLP-1 drugs, providing faster prescriptions and eliminating the need for insurance bureaucracy, thereby boosting compliance and affordability.
