Eli Lilly Strengthens Position in $150B Obesity Drug Competition Amid Novo and Pfizer Rivalry — Potential Benefits for ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Source: Benzinga
Healthcare ETFs Capitalizing on Obesity Drug Boom: Healthcare ETFs are benefiting from the $150 billion obesity-drug market, with major players like Eli Lilly, Novo Nordisk, and Pfizer competing for market share, leading to increased investor interest in diversified ETFs.
Eli Lilly's Strong Performance: Eli Lilly's stock rose nearly 5% following impressive third-quarter earnings, prompting a raised profit forecast, while its significant presence in major healthcare ETFs like XLV and IHE highlights its dominance in the sector.
Novo Nordisk's Strategic Moves: Novo Nordisk is making headlines with a $6.5 billion counterbid for biotech Metsera, which is developing innovative weight-loss treatments, intensifying competition in the GLP-1 market against Pfizer's earlier bid.
Emergence of Themed ETFs: The Roundhill GLP-1 & Weight Loss ETF offers a focused investment opportunity in companies leading the anti-obesity trend, reflecting the growing interest in specialized funds within the pharmaceutical landscape.
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Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 25.630
Low
24.00
Averages
28.56
High
35.00
Current: 25.630
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, and others. Its PF-08653944 is an ultra-long-acting fully biased GLP-1 receptor agonist.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pfizer Faces Challenges Yet Remains a Long-Term Investment Opportunity
- Long History: Founded in 1849, Pfizer has survived over a century in the highly competitive pharmaceutical industry, with a corporate ethos emphasizing resilience in adversity, which instills confidence in investors.
- Stock Price Decline: Pfizer's stock has dropped over 50% due to a retraction in pandemic-related vaccine demand, following a significant price spike, presenting a potential buying opportunity for long-term investors.
- Patent Expiration Risks: The company faces risks from the expiration of patents on key drugs, with several set to expire by 2028, leading to concerns about declining sales and investor apprehension.
- Innovation and Investment Opportunities: Despite challenges, Pfizer is actively developing new drugs, including vaccines and oncology treatments, with plans for up to 20 pivotal studies in 2026, indicating its long-term investment potential amidst industry dynamics.
See More
Rising Risks of U.S. Economic Recession
- Recession Prediction Challenges: The last official U.S. recession occurred in early 2020, and although the GDP contracted for two consecutive quarters in 2022, the National Bureau of Economic Research (NBER) did not classify it as a recession due to a healthy labor market and robust consumer spending, indicating economic resilience.
- Market Overvaluation Risks: The S&P 500 is trading near all-time highs with a price-to-earnings ratio of 33, prompting investors to be cautious of a potential market crash, especially given the backdrop of inflation, rising interest rates, and geopolitical crises that could trigger a new recession.
- Investment Strategy Adjustments: Investors are advised to trim holdings in high-growth sectors like technology and energy, reallocating funds into defensive sectors such as consumer staples, healthcare, and utilities to mitigate macroeconomic pressures while ensuring stable dividend income.
- Fixed-Income Investment Allocation: Increasing the allocation to fixed-income investments like T-bills and investment-grade bonds is recommended; while these low-risk investments may not yield higher returns than stocks, they preserve capital and provide a steady income stream, ensuring sufficient liquidity for retirement.
See More
Fulcrum Therapeutics Abandons Sickle-Cell Drug Development Amid FDA Concerns
- Stock Plunge: Fulcrum Therapeutics' shares plummeted 50% in premarket trading on Tuesday, reflecting strong market reaction to the company's decision to abandon its experimental sickle-cell disease drug following FDA cancer risk concerns, leading to a significant loss of investor confidence.
- Drug Development Setback: The company aimed to use pociredir to increase fetal hemoglobin levels for treating sickle-cell disease, but the FDA indicated that all drugs targeting the PRC2 protein complex carry similar malignancy risks, compounding the challenges in drug development.
- Strategic Shift: Fulcrum announced it would explore strategic options, including a potential sale or merger, and has begun cost-cutting measures to preserve cash, with current cash and investments totaling $333.3 million, indicating the company's response strategy amid significant challenges.
- Clinical Trial Insights: Despite the FDA's safety concerns, Fulcrum emphasized that no new safety issues had emerged in clinical trials, and pociredir demonstrated increases in fetal hemoglobin, which could help alleviate disease severity in sickle-cell patients.
See More
Long-Term Investment Opportunities in Healthcare Stocks
- CVS Health Recovery: CVS Health has outperformed broader equities over the past 12 months, with a market cap of $116 billion, driven by improved financial results, and plans to enhance profitability by scaling back its Medicare Advantage segment, solidifying its competitive edge in the U.S. healthcare market.
- AbbVie's Growth Drivers: Despite facing pressure from declining Humira sales, AbbVie's new drugs Skyrizi and Rinvoq continue to exceed expectations, with a market cap of $376 billion, and it is not expected to face significant patent losses over the next decade, indicating strong long-term growth potential in the biopharmaceutical sector.
- Pfizer's Transformation: Pfizer's stock is down over 50% from its all-time highs, but new products like the Abrysvo vaccine are performing well, with a market cap of $146 billion, and it is expected to achieve significant clinical progress in the coming years through a robust pipeline, restoring market confidence.
- Attractive Dividend Yields: CVS, AbbVie, and Pfizer all offer dividend yields above the market average, with CVS at 3%, AbbVie at 3.2%, and Pfizer at 6.6%, making them ideal choices for long-term investors seeking income.
See More
Long-Term Investment Opportunities in Healthcare Stocks
- CVS Health Recovery: CVS Health has outperformed broader equities over the past 12 months due to strong financial results and an improved medium-term outlook, despite challenges in its Medicare Advantage segment, with expectations of boosting profitable growth by scaling back this business over the next five years.
- AbbVie's Growth Drivers: Despite declining sales of Humira due to biosimilar competition, AbbVie's new drugs, Skyrizi and Rinvoq, continue to exceed expectations, and with no significant patent losses expected over the next decade, revenue and earnings are projected to grow steadily.
- Pfizer's Potential: Pfizer's stock is down over 50% from its all-time highs, but its extensive pipeline is expected to yield significant clinical advancements in the coming years, particularly in oncology and chronic weight management, making its current 6.6% forward yield attractive for long-term investors.
- Defensive Nature of Healthcare: Despite regulatory pressures and an uncertain outlook, the healthcare sector's trend towards increased spending makes high-quality dividend stocks a preferred choice for long-term investors, especially against the backdrop of a global aging population.
See More
Investment Comparison: AbbVie vs. Pfizer
- AbbVie's Financial Performance: In FY 2025, AbbVie reported revenue of approximately $61.2 billion, an 8.6% increase year-over-year, with a net income of about $4.2 billion and a net margin of 6.9%, indicating successful integration of new products despite customer concentration risks.
- Pfizer's Market Position: Pfizer generated nearly $62.6 billion in revenue for FY 2025, a slight decline of 1.6% from the previous year, yet achieved a net income close to $7.8 billion with a net margin of 12.4%, demonstrating effective cost management amid patent expiration challenges.
- Risk Overview: AbbVie faces significant revenue concentration with 42% of its income reliant on two major products, contending with competition from biosimilars and pricing pressures, while Pfizer must navigate patent expirations and high R&D costs, highlighting their strategic differences.
- Valuation Comparison: AbbVie has a forward P/E ratio of 14.7x compared to Pfizer's 8.7x, indicating that Pfizer appears more attractive in terms of valuation, although AbbVie shows stronger growth prospects and business stability.
See More
Pfizer Faces Challenges Yet Remains a Long-Term Investment Opportunity
- Long History: Founded in 1849, Pfizer has survived over a century in the highly competitive pharmaceutical industry, with a corporate ethos emphasizing resilience in adversity, which instills confidence in investors.
- Stock Price Decline: Pfizer's stock has dropped over 50% due to a retraction in pandemic-related vaccine demand, following a significant price spike, presenting a potential buying opportunity for long-term investors.
- Patent Expiration Risks: The company faces risks from the expiration of patents on key drugs, with several set to expire by 2028, leading to concerns about declining sales and investor apprehension.
- Innovation and Investment Opportunities: Despite challenges, Pfizer is actively developing new drugs, including vaccines and oncology treatments, with plans for up to 20 pivotal studies in 2026, indicating its long-term investment potential amidst industry dynamics.
See More
Rising Risks of U.S. Economic Recession
- Recession Prediction Challenges: The last official U.S. recession occurred in early 2020, and although the GDP contracted for two consecutive quarters in 2022, the National Bureau of Economic Research (NBER) did not classify it as a recession due to a healthy labor market and robust consumer spending, indicating economic resilience.
- Market Overvaluation Risks: The S&P 500 is trading near all-time highs with a price-to-earnings ratio of 33, prompting investors to be cautious of a potential market crash, especially given the backdrop of inflation, rising interest rates, and geopolitical crises that could trigger a new recession.
- Investment Strategy Adjustments: Investors are advised to trim holdings in high-growth sectors like technology and energy, reallocating funds into defensive sectors such as consumer staples, healthcare, and utilities to mitigate macroeconomic pressures while ensuring stable dividend income.
- Fixed-Income Investment Allocation: Increasing the allocation to fixed-income investments like T-bills and investment-grade bonds is recommended; while these low-risk investments may not yield higher returns than stocks, they preserve capital and provide a steady income stream, ensuring sufficient liquidity for retirement.
See More
Fulcrum Therapeutics Abandons Sickle-Cell Drug Development Amid FDA Concerns
- Stock Plunge: Fulcrum Therapeutics' shares plummeted 50% in premarket trading on Tuesday, reflecting strong market reaction to the company's decision to abandon its experimental sickle-cell disease drug following FDA cancer risk concerns, leading to a significant loss of investor confidence.
- Drug Development Setback: The company aimed to use pociredir to increase fetal hemoglobin levels for treating sickle-cell disease, but the FDA indicated that all drugs targeting the PRC2 protein complex carry similar malignancy risks, compounding the challenges in drug development.
- Strategic Shift: Fulcrum announced it would explore strategic options, including a potential sale or merger, and has begun cost-cutting measures to preserve cash, with current cash and investments totaling $333.3 million, indicating the company's response strategy amid significant challenges.
- Clinical Trial Insights: Despite the FDA's safety concerns, Fulcrum emphasized that no new safety issues had emerged in clinical trials, and pociredir demonstrated increases in fetal hemoglobin, which could help alleviate disease severity in sickle-cell patients.
See More
Long-Term Investment Opportunities in Healthcare Stocks
- CVS Health Recovery: CVS Health has outperformed broader equities over the past 12 months, with a market cap of $116 billion, driven by improved financial results, and plans to enhance profitability by scaling back its Medicare Advantage segment, solidifying its competitive edge in the U.S. healthcare market.
- AbbVie's Growth Drivers: Despite facing pressure from declining Humira sales, AbbVie's new drugs Skyrizi and Rinvoq continue to exceed expectations, with a market cap of $376 billion, and it is not expected to face significant patent losses over the next decade, indicating strong long-term growth potential in the biopharmaceutical sector.
- Pfizer's Transformation: Pfizer's stock is down over 50% from its all-time highs, but new products like the Abrysvo vaccine are performing well, with a market cap of $146 billion, and it is expected to achieve significant clinical progress in the coming years through a robust pipeline, restoring market confidence.
- Attractive Dividend Yields: CVS, AbbVie, and Pfizer all offer dividend yields above the market average, with CVS at 3%, AbbVie at 3.2%, and Pfizer at 6.6%, making them ideal choices for long-term investors seeking income.
See More
Long-Term Investment Opportunities in Healthcare Stocks
- CVS Health Recovery: CVS Health has outperformed broader equities over the past 12 months due to strong financial results and an improved medium-term outlook, despite challenges in its Medicare Advantage segment, with expectations of boosting profitable growth by scaling back this business over the next five years.
- AbbVie's Growth Drivers: Despite declining sales of Humira due to biosimilar competition, AbbVie's new drugs, Skyrizi and Rinvoq, continue to exceed expectations, and with no significant patent losses expected over the next decade, revenue and earnings are projected to grow steadily.
- Pfizer's Potential: Pfizer's stock is down over 50% from its all-time highs, but its extensive pipeline is expected to yield significant clinical advancements in the coming years, particularly in oncology and chronic weight management, making its current 6.6% forward yield attractive for long-term investors.
- Defensive Nature of Healthcare: Despite regulatory pressures and an uncertain outlook, the healthcare sector's trend towards increased spending makes high-quality dividend stocks a preferred choice for long-term investors, especially against the backdrop of a global aging population.
See More
Investment Comparison: AbbVie vs. Pfizer
- AbbVie's Financial Performance: In FY 2025, AbbVie reported revenue of approximately $61.2 billion, an 8.6% increase year-over-year, with a net income of about $4.2 billion and a net margin of 6.9%, indicating successful integration of new products despite customer concentration risks.
- Pfizer's Market Position: Pfizer generated nearly $62.6 billion in revenue for FY 2025, a slight decline of 1.6% from the previous year, yet achieved a net income close to $7.8 billion with a net margin of 12.4%, demonstrating effective cost management amid patent expiration challenges.
- Risk Overview: AbbVie faces significant revenue concentration with 42% of its income reliant on two major products, contending with competition from biosimilars and pricing pressures, while Pfizer must navigate patent expirations and high R&D costs, highlighting their strategic differences.
- Valuation Comparison: AbbVie has a forward P/E ratio of 14.7x compared to Pfizer's 8.7x, indicating that Pfizer appears more attractive in terms of valuation, although AbbVie shows stronger growth prospects and business stability.
See More
