ETFs in Focus as Competition Heats Up in Weight Loss Drug Segment

Group 1: Industry Overview - Global obesity rates have nearly tripled since 1975 and are projected to affect over half the population by 2035, highlighting a significant public health challenge [1] - GLP-1 medications, initially developed for diabetes treatment, have shown effectiveness in appetite suppression and substantial weight loss, with additional benefits in slowing Parkinson's symptoms and reducing cardiovascular risks by approximately 20% [1] Group 2: Market Dynamics - Eli Lilly and Novo Nordisk dominate the weight-loss drug market, experiencing a surge in share prices due to high demand, although both companies saw declines of 6.3% and 4% respectively on July 18, 2024, amid rising competition [2] - Roche's new obesity drug candidate, CT-996, demonstrated a placebo-adjusted average weight loss of 6.1% in obese patients without Type 2 diabetes within four weeks, intensifying competition in the market [2][3] Group 3: Investment Opportunities - The Tema Obesity & Cardiometabolic ETF has about $83.2 million in assets, with top holdings including Vertex Pharma (6.17%), Amgen (5.47%), and Eli Lilly (5.29%), focusing on long-term growth in combating obesity [5] - The Amplify Weight Loss Drug & Treatment ETF, with a focus on Eli Lilly (15.71%) and Novo Nordisk (14.98%), aims to track the performance of the VettaFi Weight Loss Drug & Treatment Index [6] - The Roundhill GLP-1 & Weight Loss ETF includes significant holdings in Eli Lilly (20.93%) and Novo Nordisk (20.70%), targeting companies involved in weight loss pharmaceuticals and supplements [7][8]