Inside the Booming Obesity Drug Market: Weight Loss ETFs to Win
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 16 2024
0mins
Source: NASDAQ.COM
Growth of Weight Loss Medications: The pharmaceutical industry is experiencing a surge in weight loss medications, particularly GLP-1 receptor agonists like Ozempic and Wegovy, driven by rising obesity rates and related health conditions. The global market for anti-obesity drugs is projected to reach $50 billion by 2030.
Emerging Competitors and Innovations: Companies such as Zealand Pharma and Viking Therapeutics are developing new weight loss treatments, including oral options and alternative hormone therapies, indicating a competitive landscape alongside established players Eli Lilly and Novo Nordisk.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1102.080
Low
950.00
Averages
1192
High
1500
Current: 1102.080
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
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.
FDA Grants Access to Eli Lilly's Next-Gen Obesity Drug for 79-Year-Old Patient
- FDA Collaboration: The FDA has partnered with Eli Lilly (LLY) to allow a 79-year-old man to access the experimental obesity drug retatrutide through the compassionate use program, highlighting the agency's support for innovative therapies.
- Significant Drug Efficacy: Retatrutide targets GIP, GLP-1, and glucagon receptors, with late-stage trial data indicating up to 28% weight loss over 80 weeks in adults with obesity or overweight, showcasing its potential as a powerful weight-loss solution.
- Unique Patient Background: The patient, aged 79 at the time of the request in April, was reportedly well-connected, suggesting that his application for FDA approval was influenced by high-level health officials, which may impact the drug's future accessibility.
- Transparent Company Policy: Eli Lilly stated that it provides investigational medicines in rare cases when individuals cannot join clinical trials and have exhausted treatment options, demonstrating the company's commitment to addressing patient needs and regulatory compliance.
See More
Sangamo Therapeutics Enters Asset Sales and Bankruptcy Proceedings
- Asset Sale Agreements: Sangamo Therapeutics has entered into agreements with Eli Lilly to sell its capsid delivery platform, zinc finger platform, modular integrase platform, and the ST-506 program, which is expected to generate cash flow to support its reorganization efforts.
- Transaction with Astellas: Concurrently, Sangamo has also reached an agreement with Astellas Pharma to sell the Fabry disease program, isaralgagene civaparvovec (ST-920), further optimizing its asset structure and focusing on core business areas.
- Bankruptcy Reorganization Initiation: Sangamo has voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, aiming to facilitate a court-supervised reorganization that includes the auction of nearly all its assets to address financial distress and rebuild the company.
- Stalking Horse Bidders: Eli Lilly and Astellas will serve as stalking horse bidders for the asset sale, indicating their strategic interest in Sangamo's technologies and assets, potentially laying the groundwork for future collaborations.
See More
Global Tech Stocks Sell Off; Eli Lilly Gains Favor
- Tech Stock Sell-Off: Global tech stocks are experiencing a sell-off, with European equities following suit and chip stocks leading the declines, indicating investor concerns that could impact market confidence and capital flows.
- Eli Lilly's Strong Performance: Eli Lilly's shares have surged over 400% in the last five years, primarily driven by the success of its weight-loss drug Mounjaro, although growth has stalled this year at just over 2%, yet its prospects in biotech remain promising.
- Market Diversification Trend: Fund manager Tom Hulick suggests investors should consider rotating out of AI stocks and focus on value stocks in biotech and GLP drugs, anticipating a pickup in small-cap stocks, reflecting a demand for diversified investments.
- GE Vernova and Panasonic Outlook: Hulick highlights GE Vernova's strong earnings momentum in the power sector, while Panasonic's backup battery systems and supercapacitors are noted for their potential to manage energy more efficiently, underscoring the importance of renewable energy technologies.
See More
Top Monster Stocks in Healthcare for Long-Term Gains
- Eli Lilly's Growth Potential: Eli Lilly (LLY) is positioned to dominate the weight loss drug market, projected to reach nearly $100 billion in the next decade, with recent quarterly revenues exceeding $12 billion, indicating strong growth momentum likely to continue driving company performance.
- AbbVie's New Growth Drivers: AbbVie (ABBV) has successfully launched Skyrizi and Rinvoq ahead of Humira's patent expiration, with recent quarterly revenues surpassing $4 billion and $2 billion respectively, showcasing the company's success in new drug development and boosting investor confidence.
- Abbott's Diversification Advantage: Abbott (ABT) maintains stability through its diversified business units in medical devices, diagnostics, nutrition, and pharmaceuticals, with recent innovations like the AI-powered coronary imaging platform and the acquisition of Exact Sciences solidifying its leadership in the oncology diagnostics market.
- Strategic Value of Long-Term Investment: These monster stocks in the healthcare sector not only demonstrate strong financial performance in the short term but also provide strategic value for long-term holding through continuous innovation and market adaptability, making them ideal for building a future-proof investment portfolio.
See More
Regeneron and Amgen's Promising Weight Loss Candidates
- Clinical Trial Progress: Regeneron plans to initiate phase 3 clinical trials for its weight-loss candidate olatorepatide this year, which demonstrated up to 19% weight loss in a 48-week study in China, indicating significant potential in the weight loss market; approval in the U.S. could further boost the company's revenue growth.
- Strong Financial Performance: Regeneron's revenue surged by 19% year-over-year to $3.6 billion in Q1, showcasing resilience despite biosimilar competition for Eylea, with sales of a new high-dose formulation growing rapidly, reflecting the company's adaptability in the biopharmaceutical sector.
- Amgen's Competitive Edge: Amgen is conducting phase 3 studies for its anti-obesity drug MariTide, which targets chronic weight management, type 2 diabetes, and cardiovascular outcomes; approval across multiple indications could pose a substantial challenge to market leaders, driving future revenue growth for the company.
- Dividend Appeal: Amgen has increased its dividends annually since 2011, currently offering a forward yield of 3%, significantly higher than the S&P 500 average, attracting long-term investors while providing additional income security for shareholders interested in weight-loss stocks.
See More
Emerging Stars in Weight Loss: Regeneron and Amgen
- Regeneron Clinical Progress: Regeneron plans to initiate phase 3 trials for its weight-loss candidate olatorepatide this year, which demonstrated up to 19% weight loss in a 48-week study in China, indicating strong potential in the weight-loss market; approval in the U.S. could significantly boost the company's growth.
- Strong Financial Performance: Regeneron's revenue surged 19% year-over-year to $3.6 billion in Q1, and despite facing biosimilar competition for Eylea, the sales growth of a new high-dose formulation reflects a solid financial foundation beyond weight-loss drugs.
- Amgen's Drug Development: Amgen is conducting phase 3 studies for its anti-obesity drug MariTide, which, if approved, will target chronic weight management and type 2 diabetes, potentially positioning it as a formidable competitor to Zepbound and expanding market share.
- Stable Dividend Yield: Amgen's revenue rose 6% year-over-year to $8.6 billion in Q1, and despite losing patent exclusivity for denosumab, strong sales from other products like Tezspire and Tepezza, along with consistent dividend increases since 2011, make it attractive for long-term investors.
See More
FDA Grants Access to Eli Lilly's Next-Gen Obesity Drug for 79-Year-Old Patient
- FDA Collaboration: The FDA has partnered with Eli Lilly (LLY) to allow a 79-year-old man to access the experimental obesity drug retatrutide through the compassionate use program, highlighting the agency's support for innovative therapies.
- Significant Drug Efficacy: Retatrutide targets GIP, GLP-1, and glucagon receptors, with late-stage trial data indicating up to 28% weight loss over 80 weeks in adults with obesity or overweight, showcasing its potential as a powerful weight-loss solution.
- Unique Patient Background: The patient, aged 79 at the time of the request in April, was reportedly well-connected, suggesting that his application for FDA approval was influenced by high-level health officials, which may impact the drug's future accessibility.
- Transparent Company Policy: Eli Lilly stated that it provides investigational medicines in rare cases when individuals cannot join clinical trials and have exhausted treatment options, demonstrating the company's commitment to addressing patient needs and regulatory compliance.
See More
Sangamo Therapeutics Enters Asset Sales and Bankruptcy Proceedings
- Asset Sale Agreements: Sangamo Therapeutics has entered into agreements with Eli Lilly to sell its capsid delivery platform, zinc finger platform, modular integrase platform, and the ST-506 program, which is expected to generate cash flow to support its reorganization efforts.
- Transaction with Astellas: Concurrently, Sangamo has also reached an agreement with Astellas Pharma to sell the Fabry disease program, isaralgagene civaparvovec (ST-920), further optimizing its asset structure and focusing on core business areas.
- Bankruptcy Reorganization Initiation: Sangamo has voluntarily filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, aiming to facilitate a court-supervised reorganization that includes the auction of nearly all its assets to address financial distress and rebuild the company.
- Stalking Horse Bidders: Eli Lilly and Astellas will serve as stalking horse bidders for the asset sale, indicating their strategic interest in Sangamo's technologies and assets, potentially laying the groundwork for future collaborations.
See More
Global Tech Stocks Sell Off; Eli Lilly Gains Favor
- Tech Stock Sell-Off: Global tech stocks are experiencing a sell-off, with European equities following suit and chip stocks leading the declines, indicating investor concerns that could impact market confidence and capital flows.
- Eli Lilly's Strong Performance: Eli Lilly's shares have surged over 400% in the last five years, primarily driven by the success of its weight-loss drug Mounjaro, although growth has stalled this year at just over 2%, yet its prospects in biotech remain promising.
- Market Diversification Trend: Fund manager Tom Hulick suggests investors should consider rotating out of AI stocks and focus on value stocks in biotech and GLP drugs, anticipating a pickup in small-cap stocks, reflecting a demand for diversified investments.
- GE Vernova and Panasonic Outlook: Hulick highlights GE Vernova's strong earnings momentum in the power sector, while Panasonic's backup battery systems and supercapacitors are noted for their potential to manage energy more efficiently, underscoring the importance of renewable energy technologies.
See More
Top Monster Stocks in Healthcare for Long-Term Gains
- Eli Lilly's Growth Potential: Eli Lilly (LLY) is positioned to dominate the weight loss drug market, projected to reach nearly $100 billion in the next decade, with recent quarterly revenues exceeding $12 billion, indicating strong growth momentum likely to continue driving company performance.
- AbbVie's New Growth Drivers: AbbVie (ABBV) has successfully launched Skyrizi and Rinvoq ahead of Humira's patent expiration, with recent quarterly revenues surpassing $4 billion and $2 billion respectively, showcasing the company's success in new drug development and boosting investor confidence.
- Abbott's Diversification Advantage: Abbott (ABT) maintains stability through its diversified business units in medical devices, diagnostics, nutrition, and pharmaceuticals, with recent innovations like the AI-powered coronary imaging platform and the acquisition of Exact Sciences solidifying its leadership in the oncology diagnostics market.
- Strategic Value of Long-Term Investment: These monster stocks in the healthcare sector not only demonstrate strong financial performance in the short term but also provide strategic value for long-term holding through continuous innovation and market adaptability, making them ideal for building a future-proof investment portfolio.
See More
Regeneron and Amgen's Promising Weight Loss Candidates
- Clinical Trial Progress: Regeneron plans to initiate phase 3 clinical trials for its weight-loss candidate olatorepatide this year, which demonstrated up to 19% weight loss in a 48-week study in China, indicating significant potential in the weight loss market; approval in the U.S. could further boost the company's revenue growth.
- Strong Financial Performance: Regeneron's revenue surged by 19% year-over-year to $3.6 billion in Q1, showcasing resilience despite biosimilar competition for Eylea, with sales of a new high-dose formulation growing rapidly, reflecting the company's adaptability in the biopharmaceutical sector.
- Amgen's Competitive Edge: Amgen is conducting phase 3 studies for its anti-obesity drug MariTide, which targets chronic weight management, type 2 diabetes, and cardiovascular outcomes; approval across multiple indications could pose a substantial challenge to market leaders, driving future revenue growth for the company.
- Dividend Appeal: Amgen has increased its dividends annually since 2011, currently offering a forward yield of 3%, significantly higher than the S&P 500 average, attracting long-term investors while providing additional income security for shareholders interested in weight-loss stocks.
See More
Emerging Stars in Weight Loss: Regeneron and Amgen
- Regeneron Clinical Progress: Regeneron plans to initiate phase 3 trials for its weight-loss candidate olatorepatide this year, which demonstrated up to 19% weight loss in a 48-week study in China, indicating strong potential in the weight-loss market; approval in the U.S. could significantly boost the company's growth.
- Strong Financial Performance: Regeneron's revenue surged 19% year-over-year to $3.6 billion in Q1, and despite facing biosimilar competition for Eylea, the sales growth of a new high-dose formulation reflects a solid financial foundation beyond weight-loss drugs.
- Amgen's Drug Development: Amgen is conducting phase 3 studies for its anti-obesity drug MariTide, which, if approved, will target chronic weight management and type 2 diabetes, potentially positioning it as a formidable competitor to Zepbound and expanding market share.
- Stable Dividend Yield: Amgen's revenue rose 6% year-over-year to $8.6 billion in Q1, and despite losing patent exclusivity for denosumab, strong sales from other products like Tezspire and Tepezza, along with consistent dividend increases since 2011, make it attractive for long-term investors.
See More
