Elevai Labs Targets $100B Anti-Obesity Market, Launches Subsidiaries

Elevai Labs acquires muscle loss prevention assets, targets anti-obesity treatment market, forecasts $100 billion growth by 2030.

By Alex P. Chase

5/16, 09:03 EDT
Eli Lilly and Company
Novo Nordisk A/S

Key Takeaway

  • Elevai Labs (NASDAQ: ELAB) acquires rights to develop "EL-22" and "EL-32" for preventing muscle loss in anti-obesity treatments, targeting a market expected to grow to $100 billion by 2030.
  • Launches two subsidiaries, Elevai Biosciences and Elevai Skincare, expanding its focus on aesthetic medicines and skincare solutions.
  • Plans to submit an Investigational New Drug application for EL-22 in 2025, addressing side effects of popular GLP-1 obesity drugs.

Global Obesity Trends

The prevalence of obesity has reached alarming levels worldwide, with some 42% of adults in the United States affected, according to the U.S. CDC. A study published in the Lancet journal indicates that around 1 billion people globally are now living with obesity. This figure represents a doubling of obese adults since 1990 and a quadrupling among children and adolescents. The escalating obesity rates underscore the urgent need for effective treatment solutions.

Anti-Obesity Market Growth

The demand for anti-obesity drugs is on the rise, with the global market reaching $6 billion annually in 2023. Goldman Sachs Research projects this market to expand significantly, forecasting a growth to $100 billion by 2030. This surge is expected to be driven by GLP-1 drugs such as Ozempic® and Wegovy®, produced by Novo Nordisk, and Mounjaro®, by Eli Lilly And Co. However, concerns have been raised about the potential side effects of these drugs, including the loss of muscle mass alongside fat mass, highlighting the need for treatments that can mitigate these effects.

Elevai Labs' Strategic Moves

Elevai Labs Inc., a medical aesthetics and biopharmaceutical drug development company, has acquired exclusive rights to develop two new assets, "EL-22" and "EL-32", aimed at preventing muscle loss in conjunction with GLP-1 obesity treatments. CEO Jordan R. Plews expressed that the adoption of GLP-1 drugs increases the demand for aesthetic procedures to address side effects like unwanted muscle loss. Elevai plans to submit an Investigational New Drug application for EL-22 to the FDA in 2025 and initiate U.S. clinical trials shortly thereafter. Additionally, Elevai has launched two new subsidiaries, Elevai Biosciences and Elevai Skincare, to focus on developing aesthetic medicines and advancing skincare solutions, respectively.

Street Views

  • Goldman Sachs Research (Bullish on the anti-obesity drug market):

    "The global market for anti-obesity drugs reached $6 billion on an annualized basis in 2023 and this global market is projected to experience a more than 16-fold increase to $100 billion by 2030."

Management Quotes

  • Jordan R. Plews, CEO of Elevai Labs:

    "We believe the adoption and use of other GLP-1 drugs […] increases the desire for related aesthetic procedures linked to the side effects from these drugs, including significant unwanted muscle loss. We see the licensing of these two assets as an opportunity to provide an unmet need in the anti-obesity drug market and expand our brand into a large and growing multi-billion-dollar market." "The launch of Elevai Biosciences, Inc. and Elevai Skincare, Inc. as wholly-owned operating subsidiaries signifies a significant milestone in our journey towards reshaping the future of medical aesthetics and biotech. With Elevai Biosciences, we believe we are poised to lead the development of next-generation aesthetic medicines, while Elevai Skincare will continue to develop and deliver exceptional cosmetic solutions to our customers worldwide."