The global obesity epidemic has prompted significant interest and investment in developing and marketing obesity drugs. With millions worldwide struggling to manage their weight, it’s no surprise that pharmaceutical companies see this as a potentially lucrative market. However, the question arises: Is the market for obesity drugs overvalued? Several factors suggest caution is warranted when evaluating the prospects of obesity drugs.

Mounjaro, already on the market to treat Type 2 diabetes in the U.S., is going head to head with Novo’s drug. The stakes are enormous in need, expected to be over $30 billion by 2030, according to analysts at Cowen Inc. Novo Nordisk was projected to capture the largest share, with Wegovy sales topping $7 billion, but if Lilly’s head-to-head trials turn out well Mounjaro, and Lilly, could be huge winners.

Some doctors, psychologists, and eating disorder experts worry the new weight loss medications, originally developed to treat diabetes, could become a problem long-term. Most people are likely to regain lost weight if they don’t keep taking the drugs for life, and the psychological toll of that rebound could be damaging, psychologists predict. Even weight loss companies like Jenny Craig wonder if the drugs could be bad or good for business.