10:41:06 EDT Wed 08 May 2024
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Globe says MTY, RBI may be feeling Ozempic Effect

2023-11-13 07:27 ET - In the News

Also In the News (C-QSR) Restaurant Brands International Inc

The Globe and Mail reports in its Saturday edition that the latest stock market craze is upon us. The Globe's Tim Shufelt writes that a new class of obesity and diabetes drugs known as GLP-1s is being hyped as the weight-loss Holy Grail the pharmaceutical industry has chased for decades. Great fortunes are already being realigned within the pharmaceutical sector and beyond, which Mr. Shufelt calls the Ozempic Effect. Is it overdone? Mr. Shufelt asks. Of course. Many of the hallmarks of a stock bubble are there. Novo Nordisk, the Danish firm behind the Ozempic shot for Type 2 diabetes and the Wegovy weight loss shot, as well as Eli Lilly, whose drug Zepbound was approved by the Food and Drug Administration on Wednesday, have each seen their stock rise by more than 60 per cent over the past year. In Canada, the most vulnerable names are Restaurant Brands International, the parent company to Tim Hortons and Burger King, as well as restaurant chain MTY Food Group, according to a CIBC report. Both stocks probably have those pressures already priced in, given the exuberance of the Ozempic Effect, the report said. "In an uncertain equity market, however, some investors have sold first and are asking questions later."

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