Keep an eye on obesity drug stocks.
In early August, Eli Lilly reported that its experimental weight loss pill helped patients lose about 11% of their body weight. However, that landed at the lower end of Wall Street’s expectations, with investors hoping it would match the effectiveness of Wegovy.
A few weeks later, trial data showed that its obesity drug helped people with diabetes and lower blood sugar levels. Overall results were positive. With that, the company now has data it needs to pursue regulatory approval, which could eventually lead to a launch a year from now.
The one issue we have with LLY is its $760 price tag.
If that’s too steep, we can also dig into Viking Therapeutics (SYM: VKTX), which is developing its own dual GLP-1/GIP receptor agonist, VK2735 in both oral and injected formulations. Even better for VKTX, its trials have been successful so far.
In fact, as noted in a VKTX press release, “Viking announced positive top-line results from the Phase 2 VENTURE study of subcutaneous VK2735 in obesity. The VENTURE trial successfully achieved its primary and all secondary endpoints, with patients receiving VK2735 demonstrating clinically meaningful reductions in body weight compared with placebo. VK2735 also demonstrated encouraging safety and tolerability in the VENTURE study, with the majority of observed adverse events (AEs) being reported as mild or moderate.”
What makes VKTX a standout is its favorable side effect profiles, which are highly sought after.
There’s also Structure Therapeutics (SYM: GPCR).
Structure Therapeutics is another hot obesity drug stock to keep on radar.
For one, according to Raymond Stevens, Ph.D., CEO of Structure Therapeutics, its ACCESS and ACCESS II studies for aleniglipron, its once-daily oral small molecule GLP-1 program, remains on track for topline data readouts by the end of the year. Two, by the end of 2025, GPCR plans to initiate the Phase 1 study of ACCG-2671, which it believes represents the most advanced oral small molecule amylin agonist in development.
Roundhill GLP-1 & Weight Loss ETF (SYM: OZEM)
Or, if you want greater exposure to obesity drug stocks, there’s also the Roundhill GLP-1 & Weight Loss ETF (OZEM). With an expense ratio of 0.59%, the ETF is the world’s first GLP-1 ETF. At the moment, the ETF has 23 holdings, which includes Novo Nordisk, Eli Lilly, Viking Therapeutics, Roche Holding, Zealand Pharma, and Pfizer.
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Written by Ian Cooper
