Nestle Introduces Protein Shots to Target Weight-Loss Drug Users in the U.S.

/in /tarafından

Nestle (NESN.S), the world’s largest food company, has launched a new product in the United States aimed at weight-loss drug users: Boost Pre-Meal Hunger Support, a protein shot designed to suppress appetite. This move marks another step in the company’s strategy to capitalize on the growing demand for weight-loss solutions.

About the Product

The Boost Pre-Meal Hunger Support shots are intended to be consumed 30 minutes before a meal. Nestle claims the drink promotes a natural GLP-1 hormone response, mimicking but on a smaller scale the appetite-suppressing effects of weight-loss drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound. These popular medications, administered via weekly injections, are known for reducing hunger and inducing feelings of fullness.

Priced at $10.99 for a pack of four, the shots contain:

  • 10 grams of whey protein
  • 45 calories
  • 1 gram of sugar
  • Zero fat

The shots are currently available on Amazon.com and in select CVS stores.

Mechanism and Claims

Nestle’s Chief Technology Officer, Stefan Palzer, explains that the protein shot’s formula includes a patented mix of peptides designed to trigger a natural GLP-1 response in the body. The product is based on whey protein micro-gels, which digest more slowly and interact longer with intestinal receptors to release the GLP-1 hormone.

This is not intended to replace weight-loss drugs but may complement their effects or help individuals maintain weight loss, Palzer said. Nestle has also patented the product’s formula to protect its unique mix of peptides and micro-gel technology.

The Science Behind It

Nestle conducted a study in 2021 involving 26 participants with type-2 diabetes, comparing the effects of whey protein microgel against a placebo. Results showed:

  • 22% reduction in glucose levels two hours after a meal in the whey protein group.
  • A positive effect on GLP-1 hormone levels.

While these findings suggest potential benefits, experts remain cautious. Dr. Lora Heisler, a nutrition researcher at the Rowett Institute, stated that while the product may boost GLP-1 levels, the effects might be comparable to consuming a glass of milk, questioning its long-term impact on weight loss.

Nestle’s Broader Strategy

The protein shots are part of a broader push by Nestle to cater to the booming obesity treatment market, which analysts project could reach $150 billion annually within a decade. Earlier this year, the company introduced protein-enriched frozen pizzas and pastas in the U.S., designed for people taking weight-loss drugs.

Nestle’s move comes amid significant shifts in consumer habits driven by the increasing popularity of weight-loss medications. In 2022, Walmart reported a slight decline in food consumption among customers using these drugs, triggering a market-wide selloff in food company shares, including Nestle’s.

Appetite for Weight-Loss Products

Nestle’s new product seeks to tap into the growing market for alternatives to injectables. While the shots offer a less powerful solution compared to medications like Wegovy or Zepbound, they provide a convenient, non-prescription option for individuals looking to manage their weight.

The protein shots also highlight Nestle’s ambition to innovate within the weight-loss segment, focusing on products that align with shifting consumer needs and health trends.

 

Merck Strikes $2 Billion Deal with Hansoh Pharma for Oral Weight-Loss Drug

/in /tarafından

Merck (MRK.N) has entered a licensing agreement worth up to $2 billion with Chinese biotech firm Hansoh Pharma (3692.HK) for the development of an experimental oral weight-loss drug, HS-10535. This move positions Merck as a new competitor in the race to deliver an alternative to injectable weight-loss treatments.

Details of the Agreement

Under the agreement, Merck will assume responsibility for developing, manufacturing, and commercializing the drug. Hansoh’s HS-10535 is a GLP-1 receptor agonist candidate, designed to emulate the effects of injectable weight-loss drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro.

Merck will pay Hansoh an upfront fee of $112 million for the exclusive license, with potential milestone payments of up to $1.9 billion based on development, regulatory progress, and sales achievements. Hansoh will also receive royalties on future sales.

Competitive Landscape

Merck faces stiff competition in the burgeoning weight-loss market. Its oral drug candidate will likely trail behind rivals such as Eli Lilly’s orforglipron, which is further along in development. Other pharmaceutical giants, including Pfizer, Amgen, and Structure Therapeutics, are also testing oral obesity treatments, while AstraZeneca has partnered with China’s Eccogene on a similar initiative.

HS-10535 is currently in the preclinical testing phase, focusing on animal studies, meaning it could be several years before it reaches commercial availability. However, Merck sees potential in the drug not only for weight loss but also for delivering cardiometabolic benefits, according to Merck Research Laboratories president Dean Li.

Merck’s Broader Strategy

This deal reflects Merck’s broader focus on second- and third-generation weight-loss treatments, particularly oral solutions that may offer added convenience over injectables. Beyond HS-10535, Merck is also developing efinopegdutide, a GLP-1 candidate targeting metabolic dysfunction-associated steatohepatitis (MASH), a severe fatty liver disease associated with obesity.

Despite entering the weight-loss race later than its competitors, Merck aims to carve a niche in the field by emphasizing treatments that address obesity-related conditions alongside weight reduction.

Market Response and Implications

Shares of Merck rose slightly to $100.80 in premarket trading following the announcement. Analysts, however, expressed concerns about the timing, as Merck’s drug will likely lag behind more advanced contenders.

Weight-loss treatments, particularly GLP-1 receptor agonists, are shaping up to be a multibillion-dollar market, driven by increasing global demand for effective and convenient solutions to obesity. The licensing deal with Hansoh signifies Merck’s commitment to becoming a key player in this competitive market.

 

CATL Develops 10 EV Models with Swappable Batteries, Aims for Mass Adoption

/in /tarafından

Contemporary Amperex Technology Co., Ltd (CATL), the world’s largest battery manufacturer, announced on Wednesday that it has co-developed 10 new electric vehicle (EV) models with automakers, all featuring swappable batteries. This development aligns with CATL’s strategy to promote battery swapping as a key alternative to traditional gasoline stations and standard EV charging methods in China.

Battery Swapping Revolution

Yang Jun, CEO of CATL’s battery-swapping brand EVOGO, revealed plans to launch the first EV equipped with its “choco-swap” battery this month, with additional models to follow in the coming months. CATL also aims to establish 1,000 battery-swapping stations next year and is seeking partnerships to accelerate station deployment.

CATL envisions battery swapping as a transformative solution, predicting that 30,000-40,000 swapping stations could replace one-third of China’s 100,000 gasoline stations in the future. Yang projects that by 2030, battery swapping will account for one-third of EV power-up solutions, alongside home and public charging options.

The “choco-swap” battery is designed for quick replacements, allowing drivers to swap depleted batteries in just one minute. CATL’s battery-swapping service is offered on a subscription basis, starting at 369 yuan ($51) per month. The company is also standardizing battery sizes to encourage broader adoption among automakers.

Collaboration and Expansion

CATL has partnered with state-owned automakers Changan Auto and FAW to integrate the battery-swapping technology. Since the launch of its EVOGO service in 2022, CATL has been piloting battery-swapping stations in select Chinese cities.

Robin Zeng, CATL’s chairman, emphasized the role of green energy in powering the swapping stations and highlighted their potential to stabilize power grids. Additionally, CATL is diversifying into areas like micro power grids and skateboard chassis as part of its long-term growth strategy.

Growing Competition in Battery Swapping

Chinese automaker Nio has been a major player in the battery-swapping space, with over 2,800 stations built as of early December. Nio’s technology allows EV batteries to be replaced in three minutes, offering another fast alternative for EV users.

The battery-swapping trend addresses critical infrastructure bottlenecks, a key challenge slowing global EV growth. While China leads in battery-swapping adoption, companies like Nio and Xpeng are also exploring extended range hybrids to cater to overseas markets with limited EV charging and swapping facilities.

Market Outlook

CATL’s aggressive push for battery swapping reflects its confidence in this technology as a scalable solution for EV energy needs. By enabling faster recharging and enhancing grid stability, CATL aims to position battery swapping as a mainstream option for both domestic and global markets.