Thursday, May 23, 2024

I Am Cautious On GLP-1 Stocks

 

So first what are GLP-1 stocks.?

 

These are the large drug manufacturers.  Most famously Eli Lilly.  But there are many more.

 

The GLP-1 drugs were originally developed for use by Type 2 Diabetics.

 

They basically slow down the absorbtion of nutrients in food.  Pricipally Glucose.

T
hey do this by slowing down the rhythmic contractions of the intestines,  meaning that food moves through the gut more slowly, one can feel less hungry and miracle, one can lose weight.


So now the GLP-1 family of drugs are the fashionable weight loss drug of the year.


I am a Type 2 Diabetic.


I did try this family of drugs a couple of years ago.  The side effects for me were horrible.  Stomach cramps, constipation, gut pain.  The weekly ritual of injecting the drug.


I gave up after a couple of months and completely changed my diet.  I ate fresh and non processed foods.


I lost over 120 pounds and reduced my insulin medication to zero.


I now watch people clamouring for GLP-1 drugs for weight loss.


The thing is, these drugs are long term.  Yes they work in the short term.  With possible side effects which are as yet unknown.


You will lose weight.


I watch people tout the GLP-1 regime as the easy answer.  They eat whatever they want and lose weight.  Yes they can pack in all of the processed foods, bread, pasta, ice cream.  Hey and they lose weight as well.



But what will the long term side effects of these drugs be?


I cannot know.  But having experienced using the drugs for a couple of months.  They get to be problematic.


Plus once started they are meant for long term use.  A lifetime of use.


Can one face a regular routine of injections for life, for a weight loss regime?  I doubt that one can.


They seem an easy solution.  But how often in the past has easy lasted.


I own several of the GLP-1 pharmaceuticals companies in my portfolio but I don't buy them for the GLP-1 pipeline.  I bought them for other treatments for  treating other diseases.


While we are seeing a boom in the demand for GLP-1 drugs.  I don't see it lasting and when it fails.


What lawsuits and damages will be pouring into the courts  leaving an oh so bitter taste on the lips of the pharmaceuticals investor who only saw a sweet sugar paved road to a magic weight loss drug on the horizon.


Go carfully into those realms.