Anti-obesity drugs can be boost for food makers, investors say

LONDON/NEW YORK, Oct 23 (Reuters): The growth in demand for appetite suppressing anti-obesity drugs like Novo Nordisk's Wegovy presents opportunities for food manufacturers and the market's initially downbeat reaction may be overdone, investors say.

When Walmart said this month that it saw a slight pullback in food consumption when people took the medication, it sparked a sell off in shares of companies including Nestle, the world's biggest packaged food maker.

"It feels like quite an overreaction," said Aviva portfolio manager Richard Saldanha. "People are extrapolating long-term consumer habits."

Wegovy has already proved a phenomenal success in the United States and is now being rolled out in some European markets including Norway, Denmark and Germany, prompting concerns in the consumer and retail industry that food sales may be impacted.