POLYPEPTIDE: Obesity = "fat for peptides"!

"Wait and see", that's how we would describe the current rule of conduct for the shares of the active ingredient manufacturer POLYPEPTIDE. In any case, the "lots of fat" is also creating a lot of fantasy in medicine, even to the point of drug hype. Several new diabetes drugs are in the pipeline, although hardly all studies can be converted into cash. However, some large pharmaceutical companies are in very good spirits, such as the U.S. company Eli Lilly or the Danish flagship company Novo Nordisk; ROCHE, one of our recommendations, is also getting involved. The "Klondike" upswing has been triggered by a new variant of diabetes drugs, namely GLP-1 analogs. These apparently not only lower blood glucose levels, no, according to studies they also ensure parallel weight loss in obesity. Furthermore, the active ingredients are also said to reduce strokes and heart attacks... and even counteract the "wretched" Alzheimer's disease. So, the "egg-laying pillow"? In any case, Eli Lilly's potential drug Mounjaro is rated very highly because it resulted in an average weight loss of 20 kilos in Phase III trials. And Novo Nordisk's Wegovy was still 15 kilos, though CagriSema (Phase II trial) could trump the U.S. company. "Hopefully it won't work in lean diabetes patients." Anyway, according to Bank of America estimates, Mounjaro could "rake in" up to USD 100 billion annually. In our opinion a bit too euphoric, nevertheless very positive...

... also for POLYPEPTIDE and Bachem. Critical voices are hardly to be found so far, although one knows from experience that such therapies often do not go along with the financeability by the health systems. Definitely, our Swiss pharma suppliers benefit from the GLP-1 boom, as it can be assumed that Eli Lilly as well as Novo Nordisk will also be supplied. We remain "bullish" with a target price of CHF 37!