The GP1-1 (glucagon-like peptide-1) drug, originally developed as a treatment for diabetes, is making waves in some circles. Developments surrounding the drug, which is also widely used for weight loss, have disrupted everyone from dialysis center operators to bariatric surgery providers to the food industry. But one of the investment advisers, Brian Krawes, president of Scharf Investments, says there is an opportunity. “Many investors are concerned about the impact of GLP-1 drugs on many companies, from restaurants to consumer staples,” he told CNBC. “We think this has created opportunities under a variety of names. ” he said. Shares in the kidney dialysis provider plunged last week on Wednesday after Novo Nordisk announced that a study showed its drug Ozempic could delay the onset of kidney disease in people with diabetes. . These drugs also affect eating habits. Walmart announced last week that it is seeing “slight changes” in the way people shop for food. This may be due in part to customers purchasing fewer appetite suppressants such as diabetes drugs Munjaro and Wigoby. GLP-1 is a hormone released in the intestines that stimulates insulin secretion, slows stomach emptying, and signals to the brain that you feel satisfied. These mechanisms help patients taking the drug lose weight and control diabetes. Mr Kraues said the drop in consumer staples Unilever’s shares was “unwarranted”. He noted Tuesday that the company’s stock has fallen 12% since the end of July due to GLP-1 concerns. “I don’t think we’re that exposed. We just think it’s a big deal because 6% of our sales are U.S. food,” he said Tuesday on CNBC’s “Street Signs Asia.” ” he said. Krawez added that the stock is trading at a 25% discount to its peers and is currently cheaper than it has historically traded. He said the discount meant Unilever was undervalued for its revenue and bottom line growth potential. “We believe the decline is unwarranted and creates a buying opportunity,” he said. Krawez also singled out McKesson, the largest U.S. drug and medical supply company, which has been attracting attention from investors. “The company is a dominant player in drug distribution. It has about 35% market share, but many people don’t know about it,” he said, adding that specialty drugs, including GLP-1 drugs, It added that it has a share of 35% of company revenue. The company also says it is growing faster than its traditional prescription drug business. “We see higher growth than the S&P, but it still trades at a discount to the S&P,” Krawez said. — CNBC’s Christina Cheddar Berk and Julie Coleman contributed to this report.
GLP-1 weight loss drugs creating an opportunity in 2 stocks: analyst
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