Novo Nordisk's Wegovy Pill Shakes Up Rivalry With Eli Lilly, Puts Health Care ETFs In Focus

Core Insights - The approval of Novo Nordisk's oral Wegovy marks a significant development in the GLP-1 market, attracting interest in healthcare and pharmaceutical ETFs [1][5] - The market for obesity treatments is projected to exceed $150 billion annually by the early 2030s, with Novo Nordisk gaining an early advantage [5] Group 1: Market Impact - The FDA's approval of Novo Nordisk's oral Wegovy is the first GLP-1 pill approved for chronic weight management, which is expected to increase access to obesity treatments [5] - In a 64-week trial, patients using the oral pill lost an average of 16.6% of their body weight compared to 2.7% for the placebo group, leading to a more than 7% increase in Novo shares during premarket trading [6] Group 2: Competitive Landscape - Eli Lilly is advancing its oral GLP-1 candidate, orforglipron, which is under accelerated review by U.S. regulators, with potential approval as early as March [7] - Other companies, including AstraZeneca and Roche, are also developing oral obesity treatments, indicating a competitive shift from injectable to oral medications [7][8] Group 3: Investment Opportunities - Broad healthcare ETFs like XLV and VHT provide diversified exposure to major drugmakers and health service providers benefiting from improved obesity outcomes [2] - More focused pharmaceutical ETFs, such as PPH and biotech funds like IBB and XBI, offer varying levels of sensitivity to drug development milestones, appealing to investors seeking targeted exposure [3][4]