The GLP-1 drug class, which includes blockbuster medicines for diabetes and weight loss, is expected to boost the U.S. economy by $1 trillion within the next four years or so, according to Goldman Sachs analysts.
Pharmaceutical companies have been reaping the benefits in the form of soaring shares based on small trials, according to Bloomberg.
Roche’s phase 1 trial enrolled 25 adults who are obese and do not have Type 2 diabetes. Within four weeks, the daily pill led to an average weight loss of 6.1%, the company said in a July 17 news release.
Within 24 hours, Roche’s market value grew by $16.8 billion, the largest gain for a phase 1 weight loss medication trial since March. Here are similar jumps in drugmakers’ shares, according to Bloomberg:
Pfizer gained $1.8 billion July 11, Zealand Pharma made $1.1 billion June 21, Roche earned $6.2 billion May 16, Amgen grossed $17.7 billion May 3, Viking Therapeutics made $1.3 billion March 26 and Novo Nordisk earned $48.6 billion March 7.
These market reactions were to phase 1 data except for Amgen, which came from CEO comments about an ongoing phase 2 trial.
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