For a moment in late September, it looked as though makers of artificial hips and knees had become the latest victims of what can only be described as the “semaglutide sell off”.
Tip style
Value
Risk rating
Medium
Timescale
Long Term
Bull points
- Newly streamlined structure
- Guidance misses priced in
- Recovery plan underway
- Valuation at a decade low
Bear points
- Margin targets look a stretch
- Battle to regain market share
Marketed under the brand names Ozempic and Wegovy, the mass rollout of the weight-loss drug has sent jitters through some sectors. Snack food giants are bracing for the profit impact of reduced appetites, as are some supermarkets, including Walmart (US:WMT). If recent share price declines is any indication, investors in medical device companies also believe the obesity treatments will slash demand for joint replacement surgery.