Ozempic shorts, which outpace longs 4:1 in Wall Street consumer staples, have arrived.
Walmart’s comments about GLP-1 drugs and their effect on shoppers stirred brokers.
One fund manager says the trend displays some “hysteria”, but another warns “look out”.
Ozempic, the wonder drug used to treat diabetes that has become a global phenomenon as a weight-loss treatment, is challenging the blue-chip status of some of the ASX’s best known companies as short sellers bet the blockbuster drug and its equivalents will wreak further havoc on market valuations.
As shorts placed against consumer staples stocks outpace longs by 4:1 on Wall Street according to Goldman Sachs, the reach of appetite-suppressing drugs is going beyond food and beverage stocks.
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Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com
