Top Ways to Trade a Potential $100 Billion Obesity Treatment Market

Dec 14, 2023

The obesity story 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.

At the rate we’re going, obesity will be the downfall for millions.

However, if millions of people can take a pill or get a shot to help lose weight, it could create an unbelievable multi, multi-billion-dollar opportunity. At the moment, Novo Nordisk and Eli Lilly are dominating the market, which could be worth more $100 billion by 2030.

However, other companies want in, which could create a good deal of M&A interest in smaller companies, such as Altimmune (ALT), where “CEO Vipin Garg said the company needs to strike a partnership or a deal with larger pharmaceutical company to move ahead to phase 3 clinical trials and work toward launching the drug known as pemvidutide,” says CNBC.

There’s also Structure Therapeutics (GPCR), which has two key catalysts nearing. First, it’s expected to release Phase 2a trial results of its diabetes treatment this month. Then, by the first half of 2024, it’s also expected to release Phase 2a results for obesity.

We can also look at Viking Therapeutics (VKTX), and its potential treatment for obesity – VK2735, which has shown a mean weight loss of up to 18 pounds from baseline. The company also initiated Phase 1 clinical study to evaluate a novel oral formulation of VK2735. The company believes the potential to provide both a subcutaneously injected and an oral dosage form represent a significant expansion of the opportunity for VK2735.

Or, look at LifeMD (LFMD), as a potential beneficiary of the weight loss story.

The company just announced it was teaming up with Medifast. As noted by Barron’s, “Under the agreement, Medifast will use LifeMD’s virtual care technology platform to provide Optavia clients access to a weight management program that includes GLP-1 medications, drugs that mimic natural hormones that impact the body’s feelings of fullness. LifeMD also will offer its patients an independent Optavia coach and other lifestyle support services.

With the obesity issue way out of hand, keep an eye on these stocks.

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