Core Insights - Novo Nordisk (NVO) and Viking Therapeutics (VKTX) are significant players in the obesity treatment market, with NVO being a market leader in the GLP-1 segment and VKTX developing a promising investigational drug [1][2][3] Group 1: Novo Nordisk (NVO) - NVO holds a 51.9% value market share in the GLP-1 segment as of Q2 2025, with a broad diabetes portfolio [4] - Wegovy, a key product for NVO, generated $5.41 billion (DKK 36.9 billion) in sales during the first half of 2025, but is facing slower-than-expected uptake in the U.S. due to illegal compounded versions [5] - NVO is expanding the indications for semaglutide, with Wegovy now approved for cardiovascular and osteoarthritis benefits, and an FDA decision on oral Wegovy expected by year-end [6] - The company is advancing its obesity pipeline, including the CagriSema program and partnerships to develop new treatments, while also diversifying into rare diseases [7][8] - NVO's recent leadership change, with a new CEO appointed on August 7, 2025, comes amid market headwinds and a stock decline since mid-2024 [9][10] - NVO cut its 2025 guidance due to slower uptake of Wegovy and Ozempic, alongside competition from Eli Lilly [10][11] Group 2: Viking Therapeutics (VKTX) - VKTX is a clinical-stage biotech firm with its investigational drug VK2735 showing potential for significant weight loss in early studies [2][12] - Despite demonstrating up to 12.2% weight loss in patients, VKTX's stock suffered after mixed results from a mid-stage study raised safety and tolerability concerns [13][14] - VKTX plans to file for an investigational new drug application for a new obesity treatment and is focusing on its obesity pipeline while exploring collaborations for other candidates [15][16] - VKTX has a strong cash position of $808 million as of June 2025, with no debt, providing financial flexibility to advance its programs [28] - VKTX's stock is trading at a lower price/book ratio compared to NVO, making it a more compelling valuation option [24][29] Group 3: Market Comparison - Both NVO and VKTX have faced stock declines of approximately 35.7% and 35.3% year-to-date, respectively, while the industry has gained 2.3% [22] - The Zacks Consensus Estimate for NVO implies a year-over-year increase of around 15% in sales and 17% in earnings per share for 2025, while VKTX is expected to widen its loss per share by 146% [17][20] - NVO is rated as a Zacks Rank 5 (Strong Sell) and VKTX as a Zacks Rank 4 (Sell), reflecting execution risks and limited near-term catalysts for both companies [26][27]

Core Insights - Novo Nordisk (NVO) has faced a significant setback in July, reducing its 2025 sales and profit outlook due to slower-than-expected growth in its semaglutide-based drugs, Wegovy and Ozempic, particularly in the U.S. obesity market [1] - The company is working to diversify its revenue sources beyond GLP-1 drugs, focusing on its Rare Disease franchise, which has seen notable regulatory milestones [2] - The FDA granted accelerated approval for Wegovy to treat noncirrhotic metabolic dysfunction-associated steatohepatitis (MASH), marking a significant advancement in liver care [3] Sales and Market Performance - Eli Lilly's GLP-1 therapies, Mounjaro and Zepbound, have rapidly gained market share, generating combined sales of $14.7 billion in the first half of 2025, accounting for 52% of Eli Lilly's total revenues [4] - Novo Nordisk's stock has underperformed, losing 34.5% year-to-date compared to a 0.3% decline in the industry [6][8] Regulatory Developments - Novo Nordisk has received EU approval for Alhemo to treat hemophilia A and B, enhancing its Rare Disease portfolio [2][8] - Wegovy is now the first GLP-1 therapy approved for MASH, providing a new treatment option for patients with liver disease [3][8] Financial Estimates and Valuation - Earnings estimates for 2025 have decreased from $3.98 to $3.84 per share, while 2026 estimates have dropped from $4.56 to $4.09 [12] - Novo Nordisk's shares are trading at a price/earnings ratio of 14.07, lower than the industry average of 14.85 and significantly below its five-year mean of 29.25 [9]

Core Insights - Eli Lilly announced positive topline results from the Phase 3 ATTAIN-2 trial for orforglipron, an investigational oral GLP-1 receptor agonist, showing significant weight loss and A1C reductions in adults with obesity or overweight and type 2 diabetes [1][2][4] Efficacy Results - Orforglipron 36 mg led to an average weight loss of 22.9 lbs (10.5%) and a reduction in A1C by 1.8% after 72 weeks, compared to 5.1 lbs (2.2%) weight loss and 0.1% A1C reduction in the placebo group [1][2] - In the trial, 75% of participants on the highest dose achieved an A1C ≤6.5%, meeting the American Diabetes Association's definition of diabetes [2][4] - The trial demonstrated that orforglipron met all primary and key secondary endpoints, including significant improvements in cardiometabolic risk factors [1][4] Safety Profile - The safety profile of orforglipron was consistent with established GLP-1 receptor agonists, with the most common adverse events being gastrointestinal-related, such as nausea (20.1% to 36.4%), vomiting (12.8% to 23.1%), and diarrhea (21.3% to 27.4%) across different doses [4][8] - Treatment discontinuation rates due to adverse events were 6.1% for 6 mg, 10.6% for 12 mg, and 10.6% for 36 mg, compared to 4.6% for placebo, indicating a balanced overall treatment discontinuation rate [4][8] Regulatory Pathway - With the completion of the ATTAIN-2 trial, Eli Lilly is prepared to initiate global regulatory submissions for orforglipron, aiming to provide a convenient, once-daily oral treatment option for obesity and type 2 diabetes [1][4][6] Clinical Trial Details - The ATTAIN-2 trial was a 72-week, randomized, double-blind, placebo-controlled study involving over 1,600 participants across multiple countries, focusing on the efficacy and safety of orforglipron [7][8]

Company Overview - Hims & Hers Health, Inc (NYSE: HIM) has maintained a subscriber base of 2.439 million as of the second quarter of 2025, indicating strong customer retention and growth potential [1]. Investment Approach - The investment analysis is based on a "First Principles" approach, which breaks down complex financial and technological problems to identify overlooked investment opportunities [1]. Analyst Background - The analyst has a strong background in investment, private equity, and venture capital, with a proven track record of delivering strong returns [1].

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of Seeking Alpha as a whole [4].

Core Insights - Lexaria Bioscience Corp. has achieved a significant milestone in its Phase 1b GLP-1 study in Australia, completing the last patent last visit (LPLV) [1][2] - The study involved 126 participants and focused on evaluating various DehydraTECH formulations against a control arm using Rybelsus® [4][6] - Interim results have shown positive outcomes, particularly in safety and tolerability compared to the control arm, with a notable reduction in gastrointestinal adverse events [3] Study Details - The study included 24-25 overweight, obese, pre- or type 2 diabetic patients in each of the five study arms, with a total of 126 participants [4] - All doses were administered orally, with no injections involved, as Lexaria aims to shift the standard of care towards oral delivery [4] - The study arms included proprietary formulations of DehydraTECH-CBD and DehydraTECH-processed semaglutide, with the fifth arm evaluating DehydraTECH-tirzepatide [5][6][7] Future Objectives - Lexaria plans to release the final results of the study in the fourth quarter of 2025 [9] - The company is currently engaged in data analysis and sample processing, with a comprehensive database being developed [2] Technology Overview - DehydraTECH™ is Lexaria's patented drug delivery technology that enhances the bio-absorption of drugs through oral delivery, aiming to reduce side effects and improve efficacy [10] - The company holds a robust intellectual property portfolio with 50 patents granted and additional patents pending worldwide [10]

Core Viewpoint - Global Partners LP (GLP) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - The correlation between changes in earnings estimates and near-term stock price movements is strong, with institutional investors using these estimates to determine fair value [4][6]. Recent Developments for Global Partners - For the fiscal year ending December 2025, Global Partners is expected to earn $2.97 per share, unchanged from the previous year, but analysts have raised their estimates by 4.6% over the past three months [8]. - The upgrade to Zacks Rank 1 places Global Partners in the top 5% of Zacks-covered stocks, indicating a strong potential for price movement in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are positioned for superior earnings estimate revisions [9][10].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Global Partners LP (GLP) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - Global Partners has a historical EPS growth rate of 12%, but projected EPS growth for this year is 23.2%, significantly higher than the industry average of 10.7% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in generating sales [5] - Global Partners has an S/TA ratio of 4.74, indicating it generates $4.74 in sales for every dollar in assets, compared to the industry average of 0.97 [6] Group 4: Sales Growth - The company is expected to achieve a sales growth of 37.2% this year, while the industry average is 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for Global Partners have increased by 4.6% over the past month [8] Group 6: Overall Positioning - Global Partners holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]

Core Viewpoint - The healthcare sector is facing volatility due to President Trump's tariff threat on imported pharmaceuticals, which has led to a 2.74% decline in the sector over the past week and a 5.13% loss year-to-date, the worst among all S&P 500 sectors [1] Company-Specific Insights - Novo Nordisk experienced a 5.79% decline in stock price over the past five days following disappointing earnings, but rebounded due to weak trial data from Eli Lilly, which saw its shares drop nearly 11% [2] - Eli Lilly reported strong demand for its anti-obesity drugs, Mounjaro and Zepbound, despite a recent stock decline of 14.49% this year [9][15] - Novo Nordisk's Q2 revenue was $11.95 billion, slightly below expectations, but it reported a 16% increase in sales for its diabetes drug Ozempic and weight loss drug Wegovy compared to the previous year [10] Industry Trends - The Trump administration's initiative to cover weight loss drugs under Medicare and Medicaid could significantly increase access to these medications, potentially benefiting Eli Lilly and Novo Nordisk [5][8] - The global weight loss drug market is projected to grow at a compound annual growth rate of 31.66% from 2024 to 2030, with North America currently holding a 37.67% revenue share [13][14] - The U.S. anti-obesity drug market is valued at $6.62 billion and is expected to reach $7.13 billion by 2030 [14]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements show a slight asset decrease, with six-month net income and operating cash flow significantly improving year-over-year [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$3.78 billion**, while liabilities increased and partners' equity declined as of June 30, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total current assets** | $1,215,163 | $1,207,380 | $7,783 | | Property and equipment, net | $1,668,367 | $1,706,605 | ($38,238) | | **Total assets** | **$3,784,338** | **$3,788,198** | **($3,860)** | | **Total current liabilities** | $1,027,264 | $1,000,121 | $27,143 | | Senior notes | $1,270,916 | $1,186,723 | $84,193 | | **Total liabilities** | **$3,098,033** | **$3,071,585** | **$26,448** | | **Total partners' equity** | **$686,305** | **$716,613** | **($30,308)** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 sales increased but net income decreased, while six-month sales and net income both improved year-over-year Consolidated Statements of Operations Summary (in thousands, except per unit data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $4,626,925 | $4,409,698 | $9,219,122 | $8,555,090 | | Gross Profit | $272,362 | $287,884 | $527,603 | $503,019 | | Operating Income | $60,066 | $83,869 | $115,953 | $109,705 | | Net Income | $25,210 | $46,149 | $43,894 | $40,547 | | Diluted EPS | $0.55 | $1.10 | $0.92 | $0.73 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to a provision of **$164.7 million**, while investing and financing activities shifted due to acquisitions and debt refinancing Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $164,730 | ($158,356) | | Net cash used in investing activities | ($44,435) | ($232,174) | | Net cash (used in) provided by financing activities | ($112,406) | $385,002 | | **Increase (decrease) in cash and cash equivalents** | **$7,889** | **($5,528)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, significant 2025 events including debt refinancing and credit agreement amendments, and segment performance - In June 2025, the Partnership issued **$450.0 million** of 7.125% senior notes due 2033, using proceeds to redeem 2027 notes and repay credit facility borrowings[20](index=20&type=chunk)[21](index=21&type=chunk) - The credit agreement was amended in March 2025, extending maturity to March 2028, increasing the working capital facility to **$1.0 billion**, and decreasing the revolving credit facility to **$500.0 million**[22](index=22&type=chunk)[47](index=47&type=chunk) - The Gasoline Distribution and Station Operations (GDSO) segment is the largest contributor to product margin, accounting for **68%** and **67%** of the consolidated total in Q2 and H1 2025, respectively[31](index=31&type=chunk) Cash Distributions Paid in 2025 (in thousands, except per unit data) | Payment Date | Security | Quarter Ended | Per Unit | Total Paid | | :--- | :--- | :--- | :--- | :--- | | 2/14/2025 | Common Units | 12/31/24 | $0.7400 | $29,483 | | 5/15/2025 | Common Units | 03/31/25 | $0.7450 | $29,815 | | 2/18/2025 | Series B Preferred | 11/15/24 - 2/14/25 | $0.59375 | $1,781 | | 5/15/2025 | Series B Preferred | 2/15/25 - 5/14/25 | $0.59375 | $1,781 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses increased sales driven by volume, a Q2 gross profit decline due to market conditions, and key financing activities impacting liquidity [Results of Operations](index=66&type=section&id=Results%20of%20Operations) Q2 sales increased but gross profit declined due to gasoline margins, while H1 sales and gross profit grew, with SG&A expenses rising Gross Profit by Period (in millions) | Period | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $272.4 | $287.9 | -5% | $527.6 | $503.0 | +5% | - Wholesale segment product margin decreased by **16%** in Q2 2025 for gasoline due to unfavorable market conditions, but increased by **53%** for distillates due to more favorable conditions[227](index=227&type=chunk)[230](index=230&type=chunk) - GDSO segment gasoline distribution product margin decreased **6%** in Q2 2025, primarily due to lower sales volume and a reduced site count year-over-year[232](index=232&type=chunk) - SG&A expenses increased by **$2.4 million (3%)** in Q2 2025, driven by wages, benefits, and professional fees, partially offset by lower expenses related to the Revere Terminal sale[239](index=239&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operations and credit facilities, with working capital decreasing and significant debt refinancing activities undertaken - Working capital decreased by **$19.3 million** from year-end 2024 to **$187.9 million** at June 30, 2025, mainly due to a **$98.5 million** decrease in inventories and an **$80.4 million** increase in accounts payable[251](index=251&type=chunk) 2025 Capital Expenditure Outlook | Category | Expected 2025 Capex | | :--- | :--- | | Maintenance | $60.0 million - $70.0 million | | Expansion (ex-acquisitions) | $65.0 million - $75.0 million | - On June 23, 2025, the Partnership issued **$450.0 million** of 7.125% senior notes due 2033 and used the proceeds to redeem **$360.3 million** of its 2027 notes, resulting in a **$2.8 million** loss on early extinguishment of debt[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) - As of June 30, 2025, the Partnership had **$1.13 billion** in remaining availability under its credit facilities, subject to borrowing base limitations[280](index=280&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Partnership faces interest rate risk from variable debt and commodity price risk managed by derivatives, with a 10% price change impacting derivatives by **$45.0 million** - The company is exposed to interest rate risk on its **$286.7 million** of variable rate debt, where a **1%** increase in interest rates would raise annual interest expense by about **$2.9 million**[302](index=302&type=chunk) Commodity Derivative Sensitivity Analysis (in thousands) | Derivative Type | Fair Value at June 30, 2025 | Effect of 10% Price Increase | Effect of 10% Price Decrease | | :--- | :--- | :--- | :--- | | Exchange traded | ($28,648) | ($26,324) | $26,324 | | Forward contracts | $4,251 | ($18,698) | $18,698 | | **Total** | **($24,397)** | **($45,022)** | **$45,022** | [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[312](index=312&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025[313](index=313&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to have a material adverse impact on its financial condition - The company does not believe it is a party to any litigation that will have a material adverse impact on its financial condition or results of operations, with details provided in Note 15[151](index=151&type=chunk)[316](index=316&type=chunk) [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of potential risks[317](index=317&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **58,367** common units during Q2 2025 under its LTIP, with over **1 million** units remaining authorized for repurchase Common Unit Repurchases (Q2 2025) | Period | Units Purchased | Average Price Paid ($) | | :--- | :--- | :--- | | April 2025 | — | — | | May 2025 | 33,367 | — | | June 2025 | 25,000 | $53.21 | - The repurchase program is for meeting obligations under the LTIP and employment agreements, with **1,001,654** units remaining authorized for repurchase as of August 7, 2025[318](index=318&type=chunk) [Item 5. Other Information](index=67&type=section&id=Item%205.%20Other%20Information) The COO adopted a Rule 10b5-1 trading plan on March 25, 2025, for the sale of up to **44,994** common units - Mark A. Romaine, the company's COO, adopted a Rule 10b5-1 trading plan on March 25, 2025, for the sale of up to **44,994** common units[320](index=320&type=chunk) [Item 6. Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - Lists various filed exhibits, including certifications under Rule 13a-14(a)/15d-14(a) and Section 1350, as well as Inline XBRL documents[321](index=321&type=chunk)[323](index=323&type=chunk)