These 2 Companies Could Soon Join the Weight Loss Market: Are They Buys?

Industry Overview - Wegovy and Zepbound, two weight loss drugs, ranked among the top 10 best-selling medicines worldwide in the first half of 2025, indicating a growing market for weight management therapies [1] - Projections suggest that more weight management therapies could join the ranks of top-selling drugs in the next five years [1] Amgen - Amgen's leading weight loss candidate, MariTide, completed phase 2 studies last year, showing an average weight loss of up to 20% over a 52-week trial [2] - MariTide could be administered monthly, which may attract patients despite potentially lower efficacy compared to current market leaders that are taken weekly [2] - Amgen started phase 3 studies for MariTide late last year, with potential approval within three years, which would enhance its product lineup [3] - The company is also expected to gain approval for several newer products, including bemarituzumab for gastric cancer and rocatinlimab for eczema, which performed well in phase 3 studies [4] - Other drugs like Tezspire for asthma and Repatha for lowering bad cholesterol will contribute positively to Amgen's sales [5] - Amgen has a strong dividend history, having increased payouts every year since 2011, making it an attractive investment option [5] Roche - Roche's anti-obesity candidate, CT-388, demonstrated a placebo-adjusted weight loss of 22.5% at the highest dose in phase 2 studies [6] - The company plans to initiate phase 3 studies for CT-388 in obesity this quarter, with other weight management candidates like CT-996 in the pipeline [6] - CT-388 is expected to be launched within a few years, contributing to Roche's growth alongside existing products like Tecentriq for cancer and Vabysmo for eye-related diseases [7] - Roche's management anticipates that these products will support the company's top-line growth until 2038 [7]