Failure is common. But success is rewarded – as it has been for shareholders in Novo Nordisk and Eli Lilly – up 120 per cent and 180 per cent respectively over the past two years.
But when the hype gets out of control priorities become skewed, capital resources are misallocated and investors risk being dragged into an unsustainable and expensive fairytale.
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Investors should look anew at the opportunities created by this capital misallocation. The need for treatments across obesity-linked conditions is not going to change. At the same time, human beings are not going to stop bonding over food and drink.
Paul Major is manager of the Bellevue Healthcare trust
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