Tap the Weight-Loss Drug Market With These ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2024
0mins
Source: NASDAQ.COM
Emerging Weight-Loss Drug Market: The weight-loss drug market is expanding with the introduction of GLP-1 pills, showing promising results in clinical trials for effective weight loss and fewer side effects compared to injectables. Analysts predict significant growth in this sector, potentially reaching a market size of $200 billion by 2031.
Investment Opportunities: Several ETFs focused on GLP-1 and weight-loss treatments are available for investors, including Roundhill GLP-1 & Weight Loss ETF (OZEM), Amplify Weight Loss Drug & Treatment ETF (THNR), and GLP-1, Obesity & Cardiometabolic ETF (HRTS), each offering exposure to companies involved in this burgeoning pharmaceutical field.
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 44.070
Low
42.00
Averages
54.67
High
70.00
Current: 44.070
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
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.
JPMorgan Updates June Investment Recommendations
- Strong Market Performance: U.S. stocks closed May at record highs, with the Nasdaq Composite rising over 8%, the S&P 500 up 5%, and the Dow Jones Industrial Average increasing by 3%, indicating robust performance from technology stocks and reflecting heightened investor confidence in the market.
- Diverse Investment Strategies: JPMorgan compiles its top picks each month across various investment strategies, including growth, income, value, and shorts, ensuring that its investment ideas differ from fundamental ratings to cater to diverse investor needs.
- New Recommendation for Viasat: Viasat, a global provider of high-speed satellite broadband, has been added to JPMorgan's recommendations; despite its stock soaring over 730% in the past year, it dropped 16% in the last two days after filing a shelf registration to sell stock or debt, indicating market uncertainty about its future performance.
- Eli Lilly's Market Dominance: Eli Lilly's renewed focus on vaccines and infectious disease treatments, along with CVS Health restoring coverage for its weight-loss injection Zepbound, further solidifies its market dominance, with its stock hitting an all-time high last Thursday, trading approximately 73% above last August's 52-week low.
See More
Investment Case for Viking Therapeutics' VK2735 Weight-Loss Drug Development
- Clinical Trial Progress: Viking Therapeutics' VK2735 is undergoing a Phase 1 maintenance clinical trial involving approximately 180 participants, with results expected in Q3 this year, which could significantly influence investor perceptions of the stock.
- Comparative Efficacy Advantage: VK2735 demonstrated a 12.2% mean weight loss in the Phase 2 Venture oral trial after 13 weeks, suggesting potential superiority over Novo Nordisk's Wegovy, which achieved 16.6% weight loss over 64 weeks, indicating VK2735's oral formulation may be more effective.
- Safety and Tolerability Considerations: Despite VK2735's promising weight loss results, a 20% discontinuation rate due to adverse events in the Phase 2 trial highlights the need for further validation of safety and tolerability to bolster confidence in Phase 3 trials.
- Market Competitive Outlook: Should VK2735 demonstrate superior efficacy and safety in upcoming Phase 3 trials compared to Eli Lilly and Novo Nordisk's offerings, Viking could gain a competitive edge by offering a regimen that combines initial subcutaneous dosing followed by oral administration, potentially driving stock price increases.
See More
Eli Lilly Poised for Nvidia-Style Growth Surge
- Market Leadership: Eli Lilly currently holds a 60% share of the U.S. GLP-1 drug market, significantly surpassing former leader Novo Nordisk, showcasing its strong competitive position in the rapidly growing weight loss drug market, which is projected to approach $100 billion by the end of the decade.
- Innovation-Driven Growth: The recent launch of Lilly's weight loss drug Zepbound and strong results from late-stage clinical trials indicate that the company's ongoing investment in innovation will bolster its market leadership, further solidifying its advantage in the weight loss sector.
- Strong Stock Performance: Lilly's stock surged over 18% in the past month, surpassing the $1,000 mark, reflecting investor confidence in its weight loss portfolio, especially following the approval of its oral weight loss drug Foundayo, which has significantly enhanced market expectations for future growth.
- Diversified Product Portfolio: Lilly is actively developing a broad portfolio of weight loss drugs, including both oral and injectable options, and with the positive phase 3 trial data for retatrutide, the company is poised to expand its product line further in the coming years, maintaining its leading position in a competitive market.
See More
Eli Lilly Gains Approval for New Drug, Strengthening Weight Loss Market Leadership
- Market Leadership: Eli Lilly currently holds a 60% share of the U.S. GLP-1 drug market, significantly surpassing former leader Novo Nordisk, demonstrating its strong competitive position in the rapidly growing weight loss drug sector.
- New Product Launch: Lilly received approval for its oral weight loss drug Foundayo in April, with early trends showing promising results, further enriching its weight loss portfolio and positioning the company advantageously in a market approaching $100 billion.
- Successful Clinical Trials: Recently, Lilly reported positive phase 3 trial data for its candidate retatrutide, which, if successful, will complement its existing oral and injectable drugs to create a comprehensive weight loss portfolio catering to patients with varying obesity levels.
- Strong Stock Performance: Lilly's stock surged over 18% in the past month, surpassing $1,000, as investors express confidence in its high growth potential in the weight loss market, potentially indicating a growth trajectory similar to Nvidia's.
See More
Novo Nordisk Shares Surge, Closing Gap with Eli Lilly
- Market Share Recovery: Novo Nordisk (NVO) has seen its stock rise 22% over the past three months, significantly outpacing Eli Lilly's (LLY) approximately 5% increase, indicating a strengthening competitive position in the GLP-1 market, particularly following the launch of the oral weight loss drug Wegovy.
- Prescription Data Comparison: According to IQVIA data, Wegovy amassed around 18,410 U.S. prescriptions in its first week in January, while Eli Lilly's Foundayo only garnered 3,707 prescriptions last month, highlighting Novo's clear first-mover advantage in the market.
- Analyst Rating Support: Analysts from ALLKA Research reiterated a
See More
Eli Lilly's New Developments in GLP-1 Drugs
- Intensifying Market Competition: Eli Lilly's introduction of an oral GLP-1 drug may attract consumers, but it trails behind Novo Nordisk's more effective pill launched in 2026, potentially delaying market acceptance and impacting future revenues.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from its injectable GLP-1 drugs, Mounjaro and Zepbound, indicating that any loss in market share could significantly affect the company's financial health and growth prospects.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, is in development, with early trials showing some patients losing over 30% of their weight, comparable to bariatric surgery, which could provide a new growth avenue if successfully launched.
- Valuation Appeal: Although Eli Lilly's price-to-earnings ratio stands at 37, above the pharma average of 24, if Retatrutide meets expectations and drives growth, the current valuation may appear more attractive to investors, warranting close attention.
See More
JPMorgan Updates June Investment Recommendations
- Strong Market Performance: U.S. stocks closed May at record highs, with the Nasdaq Composite rising over 8%, the S&P 500 up 5%, and the Dow Jones Industrial Average increasing by 3%, indicating robust performance from technology stocks and reflecting heightened investor confidence in the market.
- Diverse Investment Strategies: JPMorgan compiles its top picks each month across various investment strategies, including growth, income, value, and shorts, ensuring that its investment ideas differ from fundamental ratings to cater to diverse investor needs.
- New Recommendation for Viasat: Viasat, a global provider of high-speed satellite broadband, has been added to JPMorgan's recommendations; despite its stock soaring over 730% in the past year, it dropped 16% in the last two days after filing a shelf registration to sell stock or debt, indicating market uncertainty about its future performance.
- Eli Lilly's Market Dominance: Eli Lilly's renewed focus on vaccines and infectious disease treatments, along with CVS Health restoring coverage for its weight-loss injection Zepbound, further solidifies its market dominance, with its stock hitting an all-time high last Thursday, trading approximately 73% above last August's 52-week low.
See More
Investment Case for Viking Therapeutics' VK2735 Weight-Loss Drug Development
- Clinical Trial Progress: Viking Therapeutics' VK2735 is undergoing a Phase 1 maintenance clinical trial involving approximately 180 participants, with results expected in Q3 this year, which could significantly influence investor perceptions of the stock.
- Comparative Efficacy Advantage: VK2735 demonstrated a 12.2% mean weight loss in the Phase 2 Venture oral trial after 13 weeks, suggesting potential superiority over Novo Nordisk's Wegovy, which achieved 16.6% weight loss over 64 weeks, indicating VK2735's oral formulation may be more effective.
- Safety and Tolerability Considerations: Despite VK2735's promising weight loss results, a 20% discontinuation rate due to adverse events in the Phase 2 trial highlights the need for further validation of safety and tolerability to bolster confidence in Phase 3 trials.
- Market Competitive Outlook: Should VK2735 demonstrate superior efficacy and safety in upcoming Phase 3 trials compared to Eli Lilly and Novo Nordisk's offerings, Viking could gain a competitive edge by offering a regimen that combines initial subcutaneous dosing followed by oral administration, potentially driving stock price increases.
See More
Eli Lilly Poised for Nvidia-Style Growth Surge
- Market Leadership: Eli Lilly currently holds a 60% share of the U.S. GLP-1 drug market, significantly surpassing former leader Novo Nordisk, showcasing its strong competitive position in the rapidly growing weight loss drug market, which is projected to approach $100 billion by the end of the decade.
- Innovation-Driven Growth: The recent launch of Lilly's weight loss drug Zepbound and strong results from late-stage clinical trials indicate that the company's ongoing investment in innovation will bolster its market leadership, further solidifying its advantage in the weight loss sector.
- Strong Stock Performance: Lilly's stock surged over 18% in the past month, surpassing the $1,000 mark, reflecting investor confidence in its weight loss portfolio, especially following the approval of its oral weight loss drug Foundayo, which has significantly enhanced market expectations for future growth.
- Diversified Product Portfolio: Lilly is actively developing a broad portfolio of weight loss drugs, including both oral and injectable options, and with the positive phase 3 trial data for retatrutide, the company is poised to expand its product line further in the coming years, maintaining its leading position in a competitive market.
See More
Eli Lilly Gains Approval for New Drug, Strengthening Weight Loss Market Leadership
- Market Leadership: Eli Lilly currently holds a 60% share of the U.S. GLP-1 drug market, significantly surpassing former leader Novo Nordisk, demonstrating its strong competitive position in the rapidly growing weight loss drug sector.
- New Product Launch: Lilly received approval for its oral weight loss drug Foundayo in April, with early trends showing promising results, further enriching its weight loss portfolio and positioning the company advantageously in a market approaching $100 billion.
- Successful Clinical Trials: Recently, Lilly reported positive phase 3 trial data for its candidate retatrutide, which, if successful, will complement its existing oral and injectable drugs to create a comprehensive weight loss portfolio catering to patients with varying obesity levels.
- Strong Stock Performance: Lilly's stock surged over 18% in the past month, surpassing $1,000, as investors express confidence in its high growth potential in the weight loss market, potentially indicating a growth trajectory similar to Nvidia's.
See More
Novo Nordisk Shares Surge, Closing Gap with Eli Lilly
- Market Share Recovery: Novo Nordisk (NVO) has seen its stock rise 22% over the past three months, significantly outpacing Eli Lilly's (LLY) approximately 5% increase, indicating a strengthening competitive position in the GLP-1 market, particularly following the launch of the oral weight loss drug Wegovy.
- Prescription Data Comparison: According to IQVIA data, Wegovy amassed around 18,410 U.S. prescriptions in its first week in January, while Eli Lilly's Foundayo only garnered 3,707 prescriptions last month, highlighting Novo's clear first-mover advantage in the market.
- Analyst Rating Support: Analysts from ALLKA Research reiterated a
See More
Eli Lilly's New Developments in GLP-1 Drugs
- Intensifying Market Competition: Eli Lilly's introduction of an oral GLP-1 drug may attract consumers, but it trails behind Novo Nordisk's more effective pill launched in 2026, potentially delaying market acceptance and impacting future revenues.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from its injectable GLP-1 drugs, Mounjaro and Zepbound, indicating that any loss in market share could significantly affect the company's financial health and growth prospects.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, is in development, with early trials showing some patients losing over 30% of their weight, comparable to bariatric surgery, which could provide a new growth avenue if successfully launched.
- Valuation Appeal: Although Eli Lilly's price-to-earnings ratio stands at 37, above the pharma average of 24, if Retatrutide meets expectations and drives growth, the current valuation may appear more attractive to investors, warranting close attention.
See More
