GLP-1 weight loss drugs lift pharma growth but raise concentration risks

A Deloitte report says booming demand for GLP1 drugs used for weight loss and diabetes is boosting returns across the pharmaceutical industry, while also increasing exposure to a small group of highvalue products. The report, published Monday, found that R&D returns for the world’s top 20 drugmakers rose to 7% for a third straight year, driven largely by medicines such as Wegovy and Zepbound. For the first time in 16 years, obesity treatments have overtaken oncology as the biggest contributor to latestage pipeline value. Deloitte said the strength of these drugs is masking a weaker picture in the rest of the sector. If GLP1 and GLP1/GIP assets are excluded, the industry’s return rate falls to 2.9%, down from 3.8% in 2024. The firm warned that this concentration could leave companies more vulnerable to shocks in a narrow set of therapeutic areas.