Equity fund forecasts weight-loss drug market frenzy far from finish line

Capital Group fund says it sees long-term opportunity in the development of drugs like Novo’s Ozempic

Novo Nordisk: Pharma firm has jumped 38 per cent this year amid a boom in demand for its Wegovy and Ozempic injectable drugs. Picture: Mario Tama/Getty

A global equity firm well-versed in pharmaceutical investing is betting the ongoing frenzy in weight-loss drug stock has further to run.

Novo Nordisk and Eli Lilly are among top holdings in the A$1.3 billion (€786.9 million) Capital Group New Perspective Fund, which is beating 94 per cent of peers this year, according to data compiled by Bloomberg.

The long-standing fund, which first invested in the two companies long before recent fervour for obesity treatments, claims ...