#14 Edition of The Daily Grind

In today’s newsletter:

  • The weight-loss drug gold rush is surging in India: See how this pharma company is trying to capitalize on this gold rush.

  • Airbus is leaving Boeing in the dust

  • Japan slips into unexpected recession

  • Coinbase is finally profitable and a whole lot more…

The weight-loss drug gold rush is surging in India:

Dr. Reddy's Laboratories, a top pharma company, just got approval to study Semaglutide, a unique weight loss drug in India. While India’s got numerous weight loss drugs, this one stands out, you know what I’m talking about if you're a regular reader of our newsletter. We’ve covered the sheer money this drug is moving in our 8th Edition.

So, what is Semaglutide exactly?:

  • Semaglutide is used to treat diabetes, but it's also effective for weight loss. It’s an injectable drug that can help people lose 10-15 kilograms in weight.

  • It's sold in India by Novo Nordisk, a Danish pharmaceutical company.

  • Novo Nordisk has two drugs with Semaglutide: Ozempic for diabetes and Wegovy for weight loss.

  • Novo Nordisk owns the patents for these formulations.

  • Currently, India only has Rybelsus, Novo's diabetes pill, and plans to release Wegovy in 2026 for weight loss.

Here are some numbers to justify why we’re calling it a gold rush:

  • When Novo Nordisk launched Wegovy in the UK, it led to a 0.7% share price increase, pushing its market value to £340 billion ($428 billion), surpassing the entire Danish economy's worth of £323 billion.

  • Novo Nordisk even briefly surpassed LVMH for the top spot on the European markets. Novo Nordisk extended its lead as shares boomed by 1.6%, while LVMH experienced a 1% decline the following day.

  • Novo Nordisk now expects a 32-38% increase in full-year sales and operating profits, up from its previous estimate of 27-33%, driven by the popularity of the weight loss drug.

  • Novo Nordisk currently dominates the diabetes and weight loss drug market, with analysts predicting annual sales to reach over £80 billion.

If Dr. Reddy’s successfully conducts its effectiveness and safety study, it aims to launch the drug within a year. Currently, it ranks as the second most valuable listed pharmaceutical in India. This drug could potentially help it become the top company in India, given the rising obesity rates and India's diabetes prevalence.

However, the question remains whether Dr. Reddy’s can reverse engineer Semaglutide without legal patent battles with Novo Nordisk. We’ll have to wait and watch.

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Airbus is leaving Boeing in the Dust:

Airbus is soaring ahead of it’s competition Boeing, the planemaker duopoly could be going mono:

  • Boeing's stock has dropped by nearly 20% in the current year due to issues with its 737 Max 9 aircraft, leading to grounding and production limitations.

  • In contrast, Airbus, the world's largest commercial plane manufacturer, has seen its stock rise by approximately 5% during the same period.

  • Airbus achieved a new industry record for new orders last year and currently holds the largest backlog of orders in planemaker history, spanning a decade.

  • Airbus plans to increase aircraft deliveries by around 9% this year, demonstrating its growth trajectory.

  • By 2026, Airbus aims to produce 75 A320neo planes per month, surpassing Boeing's pre-scandal goal of 57/month for its 737 Max.

  • Airbus faced setbacks in January when it grounded 400 planes due to potential engine flaws in some A320neo aircraft.

Despite these challenges, Airbus remains financially robust, evidenced by its announcement of a special dividend payout of 1 euro per share.



DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.