Will GLP-1 medications replace weight loss surgery?

Investing.com -- The emergence of GLP-1 medications has sparked a debate regarding their potential to replace weight loss surgery as a treatment for obesity.

But can they replace weight loss surgery completely? As the prevalence of obesity continues to rise globally, understanding the potential of GLP-1 medications could provide a key insight into how much of a revenue driver the drugs could be for companies making them.

GLP-1 Weight Loss Drugs

GLP-1 weight loss drugs are offered by various companies, including Novo Nordisk (NYSE:NVO), which has Wegovy and Ozempic, and Eli Lilly (NYSE:LLY), which manufactures Mounjaro and Zepbound.

These medications are developed to address obesity, aiming to promote weight loss and aid in weight maintenance by reducing food intake. Additionally, there are GLP-1 drugs also used for the treatment of type 2 diabetes. They are designed to help lower blood sugar levels.

GLP-1 vs. Bariatric Surgery

GLP-1 weight loss drugs are being considered as alternatives to bariatric surgery for weight management. As defined by the NHS in the UK, “Bariatric surgery is a medical term for surgical procedures used to manage obesity and obesity-related conditions.”

While bariatric surgery has been used to treat obesity, GLP-1 seemingly offers a less invasive approach to weight loss. In comparison to bariatric surgery, GLP-1 weight loss drugs provide a non-surgical option for individuals seeking effective weight management strategies.

These medications are anticipated by many to play a significant role in the treatment of obesity going forward, offering potential benefits for patients who seek effective and less invasive weight management options.

Speaking to Investing.com, ReShape Lifesciences (NASDAQ:RSLS) CEO Paul Hickey said The Lap-Band is one of five laparoscopic surgical procedures approved by the American Society for Metabolic Bariatric Surgery. However, he states it “is the safest and the least invasive of those five in the sense that it does not change your anatomy, and is completely reversible.”

“In terms of how it compares to other procedures, as I mentioned, it's safer and less invasive, but all these procedures are effective and have all proven themselves over time,” said Hickey.

When it comes to GLP-1s, Hickey acknowledged that they “have certainly become a household discussion.”

“Those drugs work extremely well to help fight diabetes, and in the process of being used in diabetes, they were approved for weight loss management,” said Hickey. “There's no question in anyone's mind that they are here to stay; there's great value in them. A very attractive tool that goes in the toolbox to fight obesity.”

Hickey noted that GLP-1s have “certainly has affected ReShape Lifesciences” but they have “responded boldly and aggressively” to adjust operational costs across the organization allowing them to continue to invest in growth drivers including the launch of their Lap-Band 2.0 FLEX.

Weight Loss Surgery Market Forecast

According to PharmiWeb.com, the weight loss surgery market size is expected to be worth around $936.1 million by 2032 from $318.3 million in 2022, growing at a CAGR of 11.7% during the period.

Hickey told Investing.com that they are starting to see “the effect of GLP-1s is actually increasing the overall market share or market size of the obesity space.”

“This is in large part due to the fact that obesity is the only disease that you can have and walk down the street and not go seek attention,” he explained. “What Ozempic and other GLP-1s are doing is getting the conversation about treatment at a much higher level so that people are actually going to healthcare professionals, maybe seeking out the injections first as a way of weight management, and then as they plateau over time, likely over 1 year - 18 months when people can't tolerate the drug or they can't have access to the drugs, they'll seek out other procedures including the Lap-Band.”

He also notes that physicians are utilizing GLP-1s with other weight loss procedures in combination therapy, where they will use the drugs along with another surgical procedure. This is said to be the case with patients who have plateaued with their weight loss.

Hickey believes GLP-1s are “just another tool” that can be used and that data will show over the next five to ten years that “that's a very viable treatment to help sustain or regain the weight loss path that individuals are on to maintain a healthy lifestyle.”

As a result, Hickey sees no risk to the market for weight loss devices as a result of GLP-1s. In fact, “quite the opposite,” he states, due to the sheer size of the untreated obesity market that will remain untreated until “there’s more attractive options for a broad spectrum of individuals.”

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