Three Top Obesity Drug Stocks to Consider Buying

Nov 14, 2023

The obesity epidemic is bursting at the seams.

According to the World Health Organization, obesity has tripled since 1975. More than 1.9 billion adults were overweight, as of 2016, with more than 650 million considered obese. Plus, more than 340 million children were considered overweight in 2016, as well. It’s an issue that’s been plaguing society for quite some time. Worse, by 2030, about 20% of the global population will be obese, according to the National Centers for Biotechnology Information.

However, that could soon change with help from Eli Lilly (LLY).

For one, the company’s anti-obesity drug just received approval in the U.S., and was recommended for approval in the EU. Two, its SELECT study data shows that the treatment reduces major adverse cardiovascular events and has additional benefits such as weight loss. And three, the drug could generate $150 billion in US revenues by 2030, with injectables being the primary choice for the next 18 months.

That could fuel further upside for LLY.

However, LLY isn’t the only one racing to help. In fact, investors may also want to pay close attention to Viking Therapeutics (VKTX).

The company just announced the completion of patient enrollment in its Phase 2 clinical trial of VK2735, the company’s wholly-owned dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors. VK2735 is in development for the potential treatment of various metabolic disorders such as obesity.

Viking expects to report data from the study in the first half of 2024.

Even Pfizer (PFE) could benefit, too. At the moment, investors are waiting on Pfizer’s Phase 2 trial data on its twice-daily pill, in obese patients without diabetes, by the end of the year. They want to see the drug cause a similar level of weight loss as a once-daily pill from Eli Lilly, as noted by CNBC.

Keep these three on radar at the moment.

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