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
Should l Buy PFE?
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: 27.730
Low
24.00
Averages
28.56
High
35.00
Current: 27.730
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, BeneFIX, Xyntha, Somavert, Ngenla, Hympavzi, Sulperazon, Zavicefta, Octagam and others.
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 Financial Challenges and Opportunities Ahead
- Disappointing Financials: Pfizer's latest quarterly report revealed a revenue decline that caused its stock price to drop approximately 4%, reflecting market concerns about its financial outlook for 2025, while growth in adjusted earnings per share was modest, impacting investor confidence.
- Clinical Trial Potential: The company expects to advance 20 pivotal clinical trials in 2023, including 10 related to weight management assets acquired from Metsera and four for the cancer drug PF'4404; positive outcomes from these potential blockbusters could significantly boost the stock price in the near term.
- Effective Cost Control: Despite declining revenues, Pfizer has achieved bottom-line growth through effective cost-cutting initiatives, with revenue from recently launched and acquired products increasing by 14% year-over-year to $10.2 billion in 2025, demonstrating the company's resilience in challenging times.
- Attractive Dividend Yield: With a current dividend yield of 6.7%, Pfizer presents an appealing opportunity for long-term income-seeking investors, as the current stock price may offer significant upside potential from strong upcoming clinical developments alongside consistent dividends.
See More
Growth Prospects for the EGFR-NSCLC Market Analyzed
- Market Size Forecast: The EGFR-NSCLC market is projected to reach $6 billion by 2024, with the U.S. accounting for approximately 56% of the total market, indicating strong demand for new therapies and significant economic potential in this region.
- Rising Patient Numbers: In 2024, nearly 117,000 new cases of EGFR-NSCLC are expected, and as testing rates increase, more patients with EGFR mutations are identified, driving the demand for targeted therapies and signaling ongoing market expansion.
- Active Drug Development: Several new drugs, including Zipalertinib and Firmonertinib, are in clinical trials and are anticipated to introduce new treatment options, which not only diversify the therapeutic landscape but also have the potential to redefine existing treatment standards and improve patient survival rates.
- Evolving Competitive Landscape: The convergence of TKIs, ADCs, and gene therapies is intensifying competition in the EGFR-NSCLC market, where future winners will depend on efficacy, resistance coverage, and combination therapy potential, driving innovation and growth in the industry.
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Eli Lilly's Market Dynamics Against Competitors
- Eli Lilly's Strong Performance: Eli Lilly's GLP-1 weight loss drugs, Mounjaro and Zepbound, saw sales growth of 99% and 175% respectively in 2025, resulting in a high P/E ratio of 46, underscoring the company's market leadership.
- Challenges for Novo Nordisk: While Novo Nordisk's obesity drugs grew by 31% in 2025, this pales in comparison to Eli Lilly's performance, and the company has warned of weak financial results in 2026 due to a pricing agreement with the U.S. government.
- Pfizer's Catch-Up Strategy: Pfizer's internally developed GLP-1 drug candidate failed, prompting the company to pursue partnerships and acquisitions to catch up with Eli Lilly and Novo Nordisk, although it has seen some success in oncology and migraine treatments.
- Investment Opportunity Analysis: Despite the current decline in Pfizer and Novo Nordisk stocks, this may present a buying opportunity for long-term investors, particularly given Pfizer's attractive 6.3% dividend yield appealing to those seeking turnaround stories.
See More
Analysis of Rapid Growth in the PROTAC Market
- Market Size Forecast: The PROTAC market is expected to experience significant growth by 2034 in leading markets, driven by an increase in clinical trial drugs targeting various cancers such as HR+/HER2− breast cancer, indicating accelerated investment and R&D activities in this field.
- Patient Population Analysis: The report highlights that approximately 85% of patients diagnosed with metastatic breast cancer had an early-stage diagnosis, emphasizing the treatment needs for early-stage patients and further driving the development and market potential of PROTAC drugs.
- Drug Development Dynamics: Leading companies like Arvinas, Pfizer, and Novartis are developing multiple PROTAC drugs, including Vepdegestrant and Luxdegalutamide, with clinical trial results directly impacting market competition and future treatment standards.
- Collaboration and Investment Opportunities: Novartis's upfront payment of $150 million for Arvinas's ARV-766 demonstrates large pharmaceutical companies' recognition and investment willingness in PROTAC technology, providing strong support for future clinical collaborations and market promotion.
See More
Gilead's Earnings Beat Expectations, Yet Stock Prices Are Falling.
- Gilead Sciences Performance: Shares of Gilead Sciences are outperforming many prominent pharmaceutical companies early in 2026.
- Fourth-Quarter Earnings Impact: The company's fourth-quarter earnings report, released on Tuesday, may bolster investor confidence in its strong performance.
See More
Pfizer Agrees to $29 Million Settlement with SEC Over Insider Trading Dispute
- Settlement Amount Finalized: Pfizer has agreed to pay $29 million to resolve a dispute with the SEC, representing nearly 40% of the remaining $75.2 million from SAC Capital's settlement, indicating Pfizer's willingness to compromise in legal disputes.
- Complex Legal Background: Pfizer initially argued it deserved the entire $75.2 million due to a fiduciary duty owed by a neurologist to Wyeth, its acquired company, but the court ruled that the funds should go to the U.S. Treasury, highlighting the legal challenges Pfizer faces.
- Investor Confidence Impact: This settlement will conclude Pfizer's appeal against a November 2024 ruling, which, while resolving legal uncertainties, may negatively affect investor confidence, especially amid ongoing regulatory scrutiny faced by the company.
- Public Interest Consideration: Pfizer stated that the settlement serves the public interest by enforcing securities laws; although it did not receive compensation, this move may enhance the company's image and promote future compliance efforts.
See More
Pfizer Faces Financial Challenges and Opportunities Ahead
- Disappointing Financials: Pfizer's latest quarterly report revealed a revenue decline that caused its stock price to drop approximately 4%, reflecting market concerns about its financial outlook for 2025, while growth in adjusted earnings per share was modest, impacting investor confidence.
- Clinical Trial Potential: The company expects to advance 20 pivotal clinical trials in 2023, including 10 related to weight management assets acquired from Metsera and four for the cancer drug PF'4404; positive outcomes from these potential blockbusters could significantly boost the stock price in the near term.
- Effective Cost Control: Despite declining revenues, Pfizer has achieved bottom-line growth through effective cost-cutting initiatives, with revenue from recently launched and acquired products increasing by 14% year-over-year to $10.2 billion in 2025, demonstrating the company's resilience in challenging times.
- Attractive Dividend Yield: With a current dividend yield of 6.7%, Pfizer presents an appealing opportunity for long-term income-seeking investors, as the current stock price may offer significant upside potential from strong upcoming clinical developments alongside consistent dividends.
See More
Growth Prospects for the EGFR-NSCLC Market Analyzed
- Market Size Forecast: The EGFR-NSCLC market is projected to reach $6 billion by 2024, with the U.S. accounting for approximately 56% of the total market, indicating strong demand for new therapies and significant economic potential in this region.
- Rising Patient Numbers: In 2024, nearly 117,000 new cases of EGFR-NSCLC are expected, and as testing rates increase, more patients with EGFR mutations are identified, driving the demand for targeted therapies and signaling ongoing market expansion.
- Active Drug Development: Several new drugs, including Zipalertinib and Firmonertinib, are in clinical trials and are anticipated to introduce new treatment options, which not only diversify the therapeutic landscape but also have the potential to redefine existing treatment standards and improve patient survival rates.
- Evolving Competitive Landscape: The convergence of TKIs, ADCs, and gene therapies is intensifying competition in the EGFR-NSCLC market, where future winners will depend on efficacy, resistance coverage, and combination therapy potential, driving innovation and growth in the industry.
See More
Eli Lilly's Market Dynamics Against Competitors
- Eli Lilly's Strong Performance: Eli Lilly's GLP-1 weight loss drugs, Mounjaro and Zepbound, saw sales growth of 99% and 175% respectively in 2025, resulting in a high P/E ratio of 46, underscoring the company's market leadership.
- Challenges for Novo Nordisk: While Novo Nordisk's obesity drugs grew by 31% in 2025, this pales in comparison to Eli Lilly's performance, and the company has warned of weak financial results in 2026 due to a pricing agreement with the U.S. government.
- Pfizer's Catch-Up Strategy: Pfizer's internally developed GLP-1 drug candidate failed, prompting the company to pursue partnerships and acquisitions to catch up with Eli Lilly and Novo Nordisk, although it has seen some success in oncology and migraine treatments.
- Investment Opportunity Analysis: Despite the current decline in Pfizer and Novo Nordisk stocks, this may present a buying opportunity for long-term investors, particularly given Pfizer's attractive 6.3% dividend yield appealing to those seeking turnaround stories.
See More
Analysis of Rapid Growth in the PROTAC Market
- Market Size Forecast: The PROTAC market is expected to experience significant growth by 2034 in leading markets, driven by an increase in clinical trial drugs targeting various cancers such as HR+/HER2− breast cancer, indicating accelerated investment and R&D activities in this field.
- Patient Population Analysis: The report highlights that approximately 85% of patients diagnosed with metastatic breast cancer had an early-stage diagnosis, emphasizing the treatment needs for early-stage patients and further driving the development and market potential of PROTAC drugs.
- Drug Development Dynamics: Leading companies like Arvinas, Pfizer, and Novartis are developing multiple PROTAC drugs, including Vepdegestrant and Luxdegalutamide, with clinical trial results directly impacting market competition and future treatment standards.
- Collaboration and Investment Opportunities: Novartis's upfront payment of $150 million for Arvinas's ARV-766 demonstrates large pharmaceutical companies' recognition and investment willingness in PROTAC technology, providing strong support for future clinical collaborations and market promotion.
See More
Gilead's Earnings Beat Expectations, Yet Stock Prices Are Falling.
- Gilead Sciences Performance: Shares of Gilead Sciences are outperforming many prominent pharmaceutical companies early in 2026.
- Fourth-Quarter Earnings Impact: The company's fourth-quarter earnings report, released on Tuesday, may bolster investor confidence in its strong performance.
See More
Pfizer Agrees to $29 Million Settlement with SEC Over Insider Trading Dispute
- Settlement Amount Finalized: Pfizer has agreed to pay $29 million to resolve a dispute with the SEC, representing nearly 40% of the remaining $75.2 million from SAC Capital's settlement, indicating Pfizer's willingness to compromise in legal disputes.
- Complex Legal Background: Pfizer initially argued it deserved the entire $75.2 million due to a fiduciary duty owed by a neurologist to Wyeth, its acquired company, but the court ruled that the funds should go to the U.S. Treasury, highlighting the legal challenges Pfizer faces.
- Investor Confidence Impact: This settlement will conclude Pfizer's appeal against a November 2024 ruling, which, while resolving legal uncertainties, may negatively affect investor confidence, especially amid ongoing regulatory scrutiny faced by the company.
- Public Interest Consideration: Pfizer stated that the settlement serves the public interest by enforcing securities laws; although it did not receive compensation, this move may enhance the company's image and promote future compliance efforts.
See More
