When GLP-1 weight-loss drugs from Novo Nordisk (NVO) and Eli Lilly (LLY) first became popular, investors feared it would affect consumer health and food companies. Many thought that if millions of people eat less, companies that sell snacks and supplements would lose customers.
Nestlé responded by developing companion protein shakes for GLP-1 users. Haleon (HLN), the London-listed company behind Advil, TUMS, Sensodyne, and Biotène, took a different approach.
On Sept. 16, the company revealed a retail strategy it designed to turn one of the GLP-1 market’s biggest challenges into a revenue driver. The early results suggest the strategy is already paying off.
How Haleon turned GLP-1 side effects into shelf space at CVS
GLP-1 drugs, including Wegovy, Zepbound, and Foundayo, help patients lose weight by mimicking a hormone that makes the body feel full. They also come with side effects, including nausea, vomiting, diarrhea, constipation, stomach cramps, and dry mouth.
Haleon makes products that address each of those symptoms. Advil handles body aches and cramps, TUMS covers heartburn and indigestion, and Biotène treats dry mouth. The company partnered with CVS Pharmacy to place these products on dedicated “GLP-1 destination shelves,” as well as regular aisles.
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“Dual placement in core aisles and GLP-1 destination sets delivers an average 24% sales lift per store,” a Haleon spokesperson told CNBC. That sales increase was recorded during the first quarter of 2026.
“Haleon holds the majority of GLP-1 shelf space at CVS,” the spokesperson added, noting that products on dedicated GLP-1 shelves performed better than those in stores without one.
The GLP-1 consumer base gives Haleon room to scale
About 11% of American adults are currently using GLP-1 weight-loss drugs, according to Gallup. That is roughly 29 million people, and the number is expected to grow as oral GLP-1 pills from both Novo Nordisk and Eli Lilly reach more patients over the coming year.
CVS confirmed its involvement, saying “CVS Pharmacy has expanded its product assortment and is highlighting CVS brand and national brand over-the-counter products to help make managing side effects easier.”
Haleon has also spoken with Walmart and Target about expanding the same shelf-placement strategy, the spokesperson said, without disclosing the outcome of those conversations. If it works the same way at Walmart and Target, the sales improvement CVS saw could repeat itself at two bigger retailers.
Haleon separated from GlaxoSmithKline in 2022 and makes money by selling consumer health brands like Sensodyne, Centrum, and Voltaren across more than 170 markets worldwide.
What the GLP-1 strategy could mean for Haleon stock
Haleon shares traded at 337.40 GBX on Sept. 17, down 3.66% over the past month and 8.86% for the year. The stock has a market cap of approximately £29.67 billion, a price-to-earnings ratio of 18.61, and a dividend yield of 2.16%.
CEO Brian McNamara said the business delivered “a good first half performance in what remains a challenging consumer environment, with sequential improvement in Q2 and a more balanced price and volume/mix.” The company also noted that 73% of its portfolio gained or maintained market share during the half.
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According to Investing.com, 11 out of 17 analysts rate Haleon a Buy, with an average 12-month price target of 420.24 GBX. Morgan Stanley carries an Overweight rating and a 460 GBX target, and Jefferies recently raised its target to 410 GBX with a Buy rating.
If the GLP-1 shelf strategy expands to Walmart and Target successfully, analysts could raise their organic growth estimates.
What could limit the gains from Haleon’s GLP-1 bet
Deutsche Bank maintains a Sell rating on Haleon with a 320 GBX price target. The bank points to rising input costs and warns that cheaper store-brand products could affect Haleon’s pricing power on those same shelves.
CVS has confirmed this risk. The retailer said it is promoting its own store brands right alongside Haleon’s national brands, which could affect Haleon’s profit over time.
Also, as oral GLP-1 pills replace injectable versions, side effects may become milder for some patients, potentially reducing the need for Haleon’s products. The first-generation pills launched in 2026, and their long-term side effects are still being studied.
Haleon’s stock sits well below its 52-week high of 416.10 GBX, and the year-to-date decline suggests that investors are cautious about the company’s growth outlook outside of its GLP-1 opportunity.
The GLP-1 shelf approach has proven itself at CVS, but it has yet to do so across major U.S. retailers, and a 24% sales increase at one chain does not guarantee the same result at another. If you’re an HLN investor, or considering the stock, size your position to reflect that uncertainty.
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