New Weight Loss ETF Is Essentially A Play On Eli Lilly, Novo Nordisk
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
0mins
Source: Business Insider
- Weight-Loss Drug ETFs: Roundhill GLP-1 & Weight Loss ETF (NASDAQ:OZEM) gaining investor interest due to holdings in Eli Lilly and Novo Nordisk, key players in the weight-loss drug market.
- Targeted Investment Opportunity: OZEM offers exposure to the weight-loss sector through dominant pharmaceutical companies.
- Eli Lilly and Novo Nordisk: Industry leaders pivotal to OZEM's performance with innovative weight-loss treatments like Zepbound and amycretin.
- OZEM's Growth: Rapidly accumulating assets under management ($3.5 million) reflecting investor confidence in weight-loss drugs.
- Investing Considerations: While OZEM provides focused exposure to a promising market, investors should be aware of risks associated with niche investments and the volatility of the weight-loss drug market.
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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: 1041.650
Low
950.00
Averages
1192
High
1500
Current: 1041.650
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.
Positive Phase 1b Results for VERVE-102 in Cardiovascular Treatment
- Clinical Trial Results: In the Phase 1b Heart-2 trial, VERVE-102 demonstrated dose-dependent reductions in PCSK9 and LDL-C, with PCSK9 decreasing by 51% to 88% and LDL-C by 9% to 62%, indicating its potential efficacy in high-risk cardiovascular patients.
- Long-term Effectiveness: Among 35 participants, the LDL-C reduction from VERVE-102 was sustained for up to 18 months post-treatment, suggesting that the drug may offer durable cardiovascular protection, addressing the urgent need for new therapies.
- FDA Fast Track Designation: VERVE-102 has received Fast Track designation from the FDA, aimed at providing new treatment options for patients with hyperlipidemia and high cardiovascular risk, highlighting its potential market value and significance.
- Future Research Plans: Lilly plans to initiate the Phase 2 clinical study by the end of this year to further validate the safety and efficacy of VERVE-102, potentially transforming cardiovascular care from chronic management to a one-time treatment.
See More
Viking Therapeutics Faces Competitive Pressures
- Intensifying Market Competition: Viking Therapeutics' weight-loss candidate VK2735 showed promising results in clinical trials, but increasing competition from new product launches by Eli Lilly and Novo Nordisk may impact Viking's market share significantly.
- Dramatic Stock Price Decline: Viking's stock price has plummeted from nearly $100 to below $30, reflecting investor pessimism regarding its future prospects, particularly in light of stronger competitors entering the market.
- Cash Burn Risks: With approximately $603 million in cash on hand but burning through about $114 million per quarter, Viking may face dilution risks if it fails to raise additional funds soon, further undermining investor confidence.
- Slow Clinical Progress: Although VK2735 remains in clinical trials, competitors are advancing in drug development, potentially placing Viking at a disadvantage in the market and affecting its long-term growth potential.
See More
Eli Lilly's Strong Performance in the Intensifying GLP-1 Drug Competition
- Market Share Competition: Eli Lilly's Mounjaro and Zepbound achieved impressive sales growth of 125% and 80% respectively in Q1 2026, demonstrating strong performance in the GLP-1 market, even as Novo Nordisk introduced its oral GLP-1 drug, with Eli Lilly maintaining its lead.
- Indian Market Dynamics: Despite Novo Nordisk's Wegovy losing patent protection in India, leading to an influx of low-cost generics, Eli Lilly's Mounjaro still saw a 10% sales increase in that market, indicating its product remains attractive amidst competition.
- International Market Advantage: Morgan Stanley estimates that Eli Lilly controls over 50% of the international market, driven by Mounjaro's superior weight-loss results, suggesting continued growth potential as consumers seek effective weight-loss solutions.
- Valuation Considerations: While Eli Lilly's price-to-earnings ratio stands at approximately 38x, down from a five-year average of 56x, it may not attract value investors; however, aggressive growth investors might reconsider its long-term international opportunities, particularly in the Indian market.
See More
Viking Therapeutics Stock Plummets, Future Uncertain
- Significant Stock Decline: Viking Therapeutics' stock has plummeted from nearly $100 to below $30, indicating a sharp decline in investor confidence, particularly as competitors like Novo Nordisk and Eli Lilly continue to launch new drugs.
- Disappointing Clinical Trial Results: Although VK2735 showed promising results in early trials, subsequent data revealed worse-than-expected side effects, leading to a negative shift in public perception and investor sentiment.
- Increasing Cash Burn: With approximately $603 million in cash on hand but burning through about $114 million per quarter, Viking may face the risk of share dilution if it fails to raise additional funds soon, further undermining shareholder confidence.
- Intensifying Market Competition: As Viking strives to bring its weight-loss drug to market, larger competitors like Novo Nordisk and Eli Lilly are developing more potent new treatments, making the future market landscape increasingly challenging for Viking and casting doubt on its prospects.
See More
Eli Lilly Reports Strong Results for GLP-1 Drugs Amidst Competition
- Significant Sales Growth: In Q1 2026, Eli Lilly's Mounjaro and Zepbound saw sales increase by 125% and 80% respectively, demonstrating robust performance in the GLP-1 market and reinforcing its leadership position.
- International Market Advantage: Despite the influx of low-cost generics in India, Mounjaro's sales grew by 10%, indicating sustained consumer appeal and potentially laying the groundwork for future international expansion.
- Market Share Increase: Morgan Stanley estimates that Eli Lilly controls over 50% of the international market, driven by Mounjaro's superior weight-loss results, suggesting strong growth potential globally.
- Valuation Considerations: While Eli Lilly's price-to-earnings ratio stands at approximately 38x, down from a five-year average of 56x, it may not attract value investors; however, aggressive growth investors might reassess its long-term opportunities in the international market.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
Positive Phase 1b Results for VERVE-102 in Cardiovascular Treatment
- Clinical Trial Results: In the Phase 1b Heart-2 trial, VERVE-102 demonstrated dose-dependent reductions in PCSK9 and LDL-C, with PCSK9 decreasing by 51% to 88% and LDL-C by 9% to 62%, indicating its potential efficacy in high-risk cardiovascular patients.
- Long-term Effectiveness: Among 35 participants, the LDL-C reduction from VERVE-102 was sustained for up to 18 months post-treatment, suggesting that the drug may offer durable cardiovascular protection, addressing the urgent need for new therapies.
- FDA Fast Track Designation: VERVE-102 has received Fast Track designation from the FDA, aimed at providing new treatment options for patients with hyperlipidemia and high cardiovascular risk, highlighting its potential market value and significance.
- Future Research Plans: Lilly plans to initiate the Phase 2 clinical study by the end of this year to further validate the safety and efficacy of VERVE-102, potentially transforming cardiovascular care from chronic management to a one-time treatment.
See More
Viking Therapeutics Faces Competitive Pressures
- Intensifying Market Competition: Viking Therapeutics' weight-loss candidate VK2735 showed promising results in clinical trials, but increasing competition from new product launches by Eli Lilly and Novo Nordisk may impact Viking's market share significantly.
- Dramatic Stock Price Decline: Viking's stock price has plummeted from nearly $100 to below $30, reflecting investor pessimism regarding its future prospects, particularly in light of stronger competitors entering the market.
- Cash Burn Risks: With approximately $603 million in cash on hand but burning through about $114 million per quarter, Viking may face dilution risks if it fails to raise additional funds soon, further undermining investor confidence.
- Slow Clinical Progress: Although VK2735 remains in clinical trials, competitors are advancing in drug development, potentially placing Viking at a disadvantage in the market and affecting its long-term growth potential.
See More
Eli Lilly's Strong Performance in the Intensifying GLP-1 Drug Competition
- Market Share Competition: Eli Lilly's Mounjaro and Zepbound achieved impressive sales growth of 125% and 80% respectively in Q1 2026, demonstrating strong performance in the GLP-1 market, even as Novo Nordisk introduced its oral GLP-1 drug, with Eli Lilly maintaining its lead.
- Indian Market Dynamics: Despite Novo Nordisk's Wegovy losing patent protection in India, leading to an influx of low-cost generics, Eli Lilly's Mounjaro still saw a 10% sales increase in that market, indicating its product remains attractive amidst competition.
- International Market Advantage: Morgan Stanley estimates that Eli Lilly controls over 50% of the international market, driven by Mounjaro's superior weight-loss results, suggesting continued growth potential as consumers seek effective weight-loss solutions.
- Valuation Considerations: While Eli Lilly's price-to-earnings ratio stands at approximately 38x, down from a five-year average of 56x, it may not attract value investors; however, aggressive growth investors might reconsider its long-term international opportunities, particularly in the Indian market.
See More
Viking Therapeutics Stock Plummets, Future Uncertain
- Significant Stock Decline: Viking Therapeutics' stock has plummeted from nearly $100 to below $30, indicating a sharp decline in investor confidence, particularly as competitors like Novo Nordisk and Eli Lilly continue to launch new drugs.
- Disappointing Clinical Trial Results: Although VK2735 showed promising results in early trials, subsequent data revealed worse-than-expected side effects, leading to a negative shift in public perception and investor sentiment.
- Increasing Cash Burn: With approximately $603 million in cash on hand but burning through about $114 million per quarter, Viking may face the risk of share dilution if it fails to raise additional funds soon, further undermining shareholder confidence.
- Intensifying Market Competition: As Viking strives to bring its weight-loss drug to market, larger competitors like Novo Nordisk and Eli Lilly are developing more potent new treatments, making the future market landscape increasingly challenging for Viking and casting doubt on its prospects.
See More
Eli Lilly Reports Strong Results for GLP-1 Drugs Amidst Competition
- Significant Sales Growth: In Q1 2026, Eli Lilly's Mounjaro and Zepbound saw sales increase by 125% and 80% respectively, demonstrating robust performance in the GLP-1 market and reinforcing its leadership position.
- International Market Advantage: Despite the influx of low-cost generics in India, Mounjaro's sales grew by 10%, indicating sustained consumer appeal and potentially laying the groundwork for future international expansion.
- Market Share Increase: Morgan Stanley estimates that Eli Lilly controls over 50% of the international market, driven by Mounjaro's superior weight-loss results, suggesting strong growth potential globally.
- Valuation Considerations: While Eli Lilly's price-to-earnings ratio stands at approximately 38x, down from a five-year average of 56x, it may not attract value investors; however, aggressive growth investors might reassess its long-term opportunities in the international market.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
