Is the end of obesity in sight?

September 28, 2023 09:00

Livewire Markets

Of all the shocking predictions from Livewire Live 2023, this was the prediction which garnered the most comments from readers. Its orator, Dr David Allen, Head of Long Short Strategies at Plato Investment Management, wasn't so enthused about what it might mean for some of his preferred fast foods.

But he was enthusiastic about what it would mean for investors in companies like the drug companies Novo Nordisk (makers of Wegovy) and Eli Lilly (NASDAQ: LLY) (makers of Mounjaro, expected to be approved towards the end of 2023). These are, in Allen's view, the clear winners as science looks to move one step closer to eliminating obesity.

In addition to his overarching prediction, Allen argued that companies which offer obesity-adjacent treatments like Medifast (NYSE: MED), Dexcom (NASDAQ: DXCM), Resmed (ASX: RMD) and Insulet (NASDAQ: PODD) are also in trouble due to the work of Novo Nordisk and Eli Lilly. Whereas Weight Watchers (NASDAQ: WW) reversed this trend by investing in a tele-health company earlier this year that only does Wegovy consultations.

Watch Allen present his shocking prediction and its implications for the above companies.

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Plato Global Alpha Fund

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