The Ozempic effect: How the wonderdrug is hitting the ASX

The weight loss drug is causing market value losses at healthcare leaders such as CSL and ResMed – but when will the market pay attention to the limits of what Ozempic may offer?

Anti-diabetic medication and weight-loss drug Ozempic. Picture: AFP

The recently released Ozempic drug is causing a sensation in the health industry.

The so-called GLP-1 drug is used to lower blood sugar in adults with type 2 diabetes, but it is also hugely popular as a weight-loss treatment.

But for Australian investors, it means a string of household favourite healthcare stocks such as CSL and ResMed have been hit hard.

But is this drug really going to strip millions off the value of a sleep diagnostic company or for that matter a global leader in blood products? Moreover, have the potential side effects of Ozempic been costed into the market, along with its undeniable advantage in select situations?

Today we look at whether the ‘Ozempic-sell off’ may just be a rare opportunity to get into blue chips at a discount.

Who is the guest?

Danielle Ecuyer is the author of Shareplicity, one of Australia’s most popular sharemarket books.

Why her?

Ecuyer is a former institutional investor and expert on the sharemarket.

What are the topics?

• Is the market impact of Ozempic overstated?

• The high cost of your big dividends

• A sorry tale of when shares go to zero

• Will fewer workers mean less goes into super?

Question of the week.

Regular listener Lucas asks: I’ve been thinking about the retirement of baby boomers and its impact on markets.

The past rise in markets may have resulted from the accumulation of wealth from baby boomers which is soon to start to reverse. Given we are projected to have decreasing workers and as they draw down on super, this would cause outflows from markets and could see the trend reverse? So is the ever increasing stockpile of money in super set to reverse?

Questions always welcome to the podcast, via [e-mail]

Originally published as The Ozempic effect: How the wonderdrug is hitting the ASX