Investments in Manufacturers of Slimming Drugs: Can You Make Money from the Trend?.

Investments in Manufacturers of Slimming Drugs: Can You Make Money from the Trend?
Investments in Manufacturers of Slimming Drugs: Can You Make Money from the Trend?

According to The Sun: FAT injections can reduce your waist size, but can they significantly increase your bank balance?

Newcomer Megan Norman shows how she earned over £600 in just 16 days after investing in a major weight loss provider – and we look into whether you can jump on the fat injection boom.

Aesthetically focused, Megan Norman, who administers Botox, decided to invest in the pharmaceutical company Novo Nordisk last December, which produces the weight reduction injections Wegovy and Ozempic.

The 30-year-old from Bedfordshire noticed a massive surge in interest in the injections and decided to jump on the trend, investing £3,700.

"I believe that these types of industries have the right fundamentals due to their high demand," she says.

"We have a nation with rising diabetes and obesity due to highly processed foods, combined with a lack of education and affordable access to healthier foods."

But after just 16 days, she realized her investment was too risky and feared that the stock price would fall.

The company warned of its earnings for this year, and reports from the United States indicate that Novo Nordisk has lost its dominant market share in this category of drugs.

Although the stock price has risen by 67.57 percent over the last five years – thanks to the surge in demand for fat injections, last year's performance lagged.

The share price has fallen by 60 percent over a 12-month period.

Megan's investment of £3,700 had grown to £4,322 – so she decided to realize her profits.

"I decided to sell and made a quick profit," Megan says.

"I could see it was in a downward trend, so I prefer to look for quick entries and exits when that’s the case."

Instead, Megan decided to invest in other companies and focused on diversifying her investments so she can invest her money for at least five years.

This is a smart investment strategy – investing your money for at least five years – as it protects you from market downturns and gives your investments time to grow.

She has invested in eight companies, including chip manufacturer ASML, Bitcoin mining company CleanSpark, and cybersecurity company Crowdstrike.

"Rather than pursuing a 'get-rich-quick' approach, I look for sectors that are robust and I believe in. I want companies that have existed for a while, have good finances, and whose services will always be in demand," she says.

Should YOU invest in fat injections?

Fat injections are on the rise – is now the time to capitalize?

Susannah Streeter warns that there is currently "volatility" in the market caused by uncertainties regarding American tariffs and price increases for consumers.

But investing in pharmaceutical companies that produce weight-loss injections could still be worth considering. So which companies are available for investment?

First, looking at Novo Nordisk, into which Megan invested, Susannah notes that the company has warned of its earnings for this year.

Rival Eli Lilly could potentially be the better option. The company is researching treatments for diabetes that can also be used as a tool for weight management.

"Their drugs perform well compared to competitors, helping the company to increase its market share," she says.

Susannah warns not to put all your eggs in one basket and to invest solely in weight-loss injections.

The key is to invest in a mix of assets, including not just different company stocks but also bonds, real estate, and gold.

If you wish to invest in weight-loss companies, your first step is to open a stock and share ISA.

You can open one at a regular bank or an investment platform like AJ Bell.

Many investment apps allow you to open an account with £25 or less.

Read reviews and check the fees that will be charged to you before selecting your ISA.

For instance, NatWest charges a fee of 0.55% of the value of your investment, which is 55p for every £100 of your investments.

While Barclays charges 0.25%, which is 25p for every £100 you invest.

The returns you achieve depend on how much you invest and where.

As we've recently seen, the stock market can drop dramatically.

The American stock market recorded its largest drop since the onset of the Covid pandemic after US President Donald Trump announced plans to impose tariffs on goods imported from other countries into the US.

The British stock market, the FTSE 100, fell by more than 10 percent following this news.

Ideally, you should have built up some savings that you can access before investing. Three months' salary is the rule to follow.

Then you need to be prepared to lose it all – only invest money that you can afford to lose.

You must be ready to invest money for at least five years to offset any downturns and allow your money to recover. If you cannot afford to lock away your money for that long, investing may not be right for you.

It's usually better to gradually put money into your investments rather than investing a large sum all at once.

How to Spot a Golden Investment Opportunity?

It is every investor's dream to recognize an investment trend before it happens.

If you invest in a company before its stock price skyrockets, you could earn thousands of pounds.

So what are the tricks to spotting a golden egg? Susannah says it's risky to time the market, but there are some general rules to follow.

"If you can think long-term and keep an eye on demographic, health, and social trends, you might recognize potential for companies," she says.

"In any rapidly growing industry, there will, however, be winners and losers.

"Time in the market is more important than timing the market.

"It's also wise to spread your investments across different companies and sectors to withstand the ups and downs."

After a successful investment in a company producing weight-reduction injections, Megan decided to expand her portfolio. She diversified her investments across eight companies and focused on risk management and long-term capital growth. Megan's strategy demonstrates the importance of careful market analysis and continuous examination of potential trends for successful investments.

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