Eric Shrayer Discusses the Next Wave of Weight-Loss Therapies with Investor’s Business Daily
Few categories in healthcare have generated as much investor enthusiasm as GLP-1 obesity therapies. For long-term investors, one of the challenges is separating the size of the addressable market from the operational and regulatory realities that will determine which franchises actually compound value over time.
That tension framed recent commentary from Eric Shrayer, Partner and Director of Research at Reynders, McVeigh Capital Management, in a conversation with Investor’s Business Daily about Eli Lilly’s investigational triple-agonist retatrutide. While Phase 3 data and analyst forecasts point to a potential blockbuster, an unregulated black-market supply chain has already emerged around the drug — well before the FDA has had a chance to review it.
Shrayer pointed to the limits of what regulators can do while a therapy is still in clinical testing.
“It’s like a game of whack-a-mole,” Shrayer told IBD.
Until retatrutide receives FDA approval, enforcement against unauthorized compounders sits largely with the agency’s warning letters and referrals to state attorneys general. Once approval is in hand, Shrayer expects Lilly to be “very aggressive” in protecting the franchise.
He also flagged a longer-horizon question that often gets lost in the demand story: the population-level impact of broad GLP-1 use over time.
“We haven’t really seen the impact of what this would have on a population over a long time frame, on a population that doesn’t necessarily need it,” Shrayer said. “I think we’ll learn as we go.”
For Reynders, McVeigh, evaluating opportunities in this category means looking past peak-sales projections to weigh durability and risks in the context of the therapeutic shift. We believe that while blockbusters can bring benefit, the real discipline lies in understanding the nuances of each company we own, rather than potential profits from a big “hit.”
Access the full article here (subscription): Eli Lilly’s Retatrutide Is So Hot, The Unlaunched Weight-Loss Drug Is Already Getting Knocked Off
DISCLOSURES:
Reynders, McVeigh Capital Management, LLC ("RMCM") is a registered investment adviser. Registration with the U.S. Securities and Exchange Commission does not imply a certain level of skill or training.
The commentary provided is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Any companies or investments referenced are presented solely as illustrative examples of the themes discussed and do not represent all securities purchased, sold, or recommended for advisory clients. It should not be assumed that any investment in such companies has been or will be profitable. A complete list of RMCM's recommendations over the past 12 months is available upon request.
By clicking the link above, you are leaving the RMCM website and entering a third-party site. RMCM is not responsible for the accuracy or content of information contained on third-party sites.