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This Could Be the Best GLP-1 Stock to Buy in 2025
GLPGlobal Partners LP(GLP) The Motley Fool·2025-02-28 13:45

Industry Overview - The GLP-1 weight loss market is projected to reach approximately 200billionby2031,drivenbysignificantweightlossresultsandsocialmediasharing[1]−ThecompetitivelandscapeforGLP−1drugsisintensifying,withmultiplehealthcarecompaniesaimingtocapturemarketshare[2]CompanyAnalysis:Amgen−Amgen′sGLP−1drug,MariTide,requiresonlymonthlyadministration,contrastingwiththeweeklyinjectionsofotherleadingtreatments,potentiallyenhancingpatientadherence[4]−Inarecentphase2trial,MariTidedemonstratedtheabilitytohelppatientsloseupto20200 billion by 2031, driven by significant weight loss results and social media sharing [1] - The competitive landscape for GLP-1 drugs is intensifying, with multiple healthcare companies aiming to capture market share [2] Company Analysis: Amgen - Amgen's GLP-1 drug, MariTide, requires only monthly administration, contrasting with the weekly injections of other leading treatments, potentially enhancing patient adherence [4] - In a recent phase 2 trial, MariTide demonstrated the ability to help patients lose up to 20% of their body weight after one year, with indications that greater weight loss may be achievable over a longer duration [5] - Amgen's stock is currently trading at 41 times its trailing earnings and 15 times its expected future earnings, suggesting it is undervalued compared to the average healthcare stock, which trades at just under 18 times future profits [7][8] - The company reported a year-over-year revenue growth of over 30% for several drugs in its diversified portfolio and generated 10.4 billion in free cash flow, sufficient to cover its $4.8 billion dividend payments [9] - Despite a temporary stock decline following trial results that fell short of expectations, Amgen's valuation does not fully reflect the potential of MariTide, which could significantly increase in value if approved [10][11]