There are a lot of healthcare companies that are investing in GLP-1 weight loss drugs. Today, the leaders in that space are Eli Lilly and Novo Nordisk. But it could get much more crowded in the future. And it's little wonder why, given analysts project that the obesity drug market could be worth $200 billion by 2031. It's a mammoth growth opportunity that can jump-start a company's sales and profits. Before drugs are approved, investors can gain insights into just how promising a GLP-1 drug is from the resu ...

The stock's market-beating momentum has come crashing to a halt, following shocking allegations from one of the world's largest pharmaceutical companies.Up-and-coming telehealth company Hims & Hers Health (HIMS 11.76%) has capitalized on the weight loss drug craze to become one of the market's top performers over the past few years.However, recently, pharmaceutical giant Novo Nordisk, the maker of popular GLP-1 agonist weight loss drug Wegovy, terminated its sales partnership with the company due to its con ...

In this articleNOVO.B-DKLLYA sign with the company logo sits outside of the headquarters of Eli Lilly in Indianapolis, Indiana, on March 17, 2024.Scott Olson | Getty ImagesA version of this article first appeared in CNBC's Healthy Returns newsletter, which brings the latest health-care news straight to your inbox. Subscribe here to receive future editions.Competition in the blockbuster weight loss drug market is ramping up, as drugmakers share fresh data on new and existing treatments. The annual American D ...

While it's no certainty that they'll figure things out -- since past results don't guarantee future success -- there are certainly reasons for both companies to be optimistic. After all, you don't string together decades of uninterrupted dividend increases by accident. Here's why investors may want to buy these two Dividend Kings at their current bargain-level prices, and hold on to them forever. These legendary dividend stocks have tumbled, but it's far too early to write them off. Target is dealing with t ...

Core Insights - Biotech stocks present significant growth opportunities due to ongoing research and potential breakthroughs in treatments [1] - Wall Street identifies two biotech candidates with projected gains exceeding 80% and 200% in the next 12 months [2] Company Summaries Viking Therapeutics - Viking Therapeutics (VKTX) experienced a surge in stock price following positive phase 2 trial results for its weight loss drug VK2735, but has since returned to pre-announcement levels [4] - The company is advancing VK2735 in both injectable and pill forms, with high demand for weight loss drugs, indicating potential for future growth [5] - Viking is set to begin phase 3 trials for the injectable version in Q2 and expects phase 2 data for the pill version in the second half of the year, with the weight loss drug market projected to reach $100 billion [6] - Wall Street forecasts a 240% increase in Viking's stock price, contingent on trial outcomes [7] CRISPR Therapeutics - CRISPR Therapeutics (CRSP) saw its stock rise leading up to the approval of its first product, Casgevy, but has since declined as investors locked in gains [8] - The company is positioned for potential growth as Casgevy requires a longer rollout process, with expectations for significant increases in new patient initiations this year [10] - Positive phase 1 data for a gene-editing candidate targeting high cholesterol has been reported, with further updates expected on candidates for lipoprotein(a), oncology, and autoimmune diseases [11][12] - Wall Street anticipates an 84% gain for CRISPR Therapeutics, making it a potential buying opportunity for growth investors [12]

Core Viewpoint - Eli Lilly has experienced significant growth driven by its weight loss drug portfolio, with stock prices increasing over 170% in three years [1][2]. Company Overview - Eli Lilly's weight loss drugs, tirzepatide (Zepbound and Mounjaro), generated over $16 billion in revenue last year [2]. - The company has a diverse portfolio of drugs targeting various indications, reducing reliance on a single treatment area [3]. Market Potential - The weight loss drug market is projected to grow from approximately $28 billion today to nearly $100 billion in five years [7]. - Eli Lilly is developing two additional candidates that may outperform current options, indicating further growth potential [7][10]. Product Development - Tirzepatide is currently administered as a weekly injectable, but Lilly is working on a pill form (orforglipron) that has shown strong efficacy and safety [10][11]. - Another candidate, retatrutide, is in phase 3 trials and targets three hormonal pathways, suggesting it may be more effective than existing drugs [11]. Manufacturing Investment - Eli Lilly has made a significant commitment to manufacturing, investing over $50 billion in the U.S. over the past five years to support its growth [12]. Competitive Landscape - Despite potential challenges such as reimbursement issues and pricing pressures, Lilly is positioned to lead in innovation within the weight loss drug market [14]. - Orforglipron would be the only weight loss drug in pill form without strict food and water guidelines, enhancing its market appeal [14]. Valuation and Investment Outlook - The stock trades at 37 times forward earnings estimates, down from nearly 43 times, reflecting a premium valuation due to its growth prospects [15]. - Eli Lilly offers a combination of strong growth potential and the stability typical of large pharmaceutical companies, making it an attractive investment opportunity [16].

Investment Strategy Insights - Billionaire fund managers, such as Stanley Druckenmiller, provide valuable insights for investors looking to build wealth by following their investment strategies [1][4] - Druckenmiller has a history of delivering an annualized average return of 30% over 30 years without a money-losing year, making his investment decisions noteworthy [4] Recent Investment Moves by Druckenmiller - Druckenmiller closed his position in Nvidia, which had a remarkable gain of over 700% from Q4 2022 to Q3 2023, expressing some regret about the timing of the sale [5] - He also exited his position in Palantir Technologies, which had a 340% gain in the previous year [6] Focus on Growth Stocks - Druckenmiller increased his investment in Eli Lilly by 52% in Q1 2023, now holding 94,830 shares valued at approximately $73 million, indicating confidence in the company's growth potential [8] - Eli Lilly's growth is driven by its position in the high-growth weight loss drug market, particularly with its GLP-1 agonist tirzepatide, which has seen significant demand [9][10] Future Growth Potential for Eli Lilly - Analysts predict the weight loss drug market could reach $95 billion annually by 2030, suggesting strong future revenue growth for Eli Lilly [10] - Lilly is also developing a new weight loss pill, orforglipron, which could enhance its market position if it proves effective and gains regulatory approval [11] Investment Considerations - Investors may consider following Druckenmiller's lead by exiting positions in Nvidia and Palantir while investing in Eli Lilly, depending on their individual investment strategies [12]

Core Insights - Eli Lilly has experienced significant revenue growth driven by its weight loss drug portfolio, particularly Mounjaro and Zepbound, which have become blockbusters generating over $11 billion and $4.9 billion in sales respectively [10] - The company is well-positioned in the weight loss market, competing with Novo Nordisk, and has plans to advance its oral weight loss candidate, orforglipron, which could provide a competitive edge [11] Company Overview - Eli Lilly offers a diverse range of medicines, including cancer and immunology drugs, but its weight loss drugs have recently become a standout category [1][2] - The company's weight loss drugs are classified as dual GIP and GLP-1 receptor agonists, which help control blood sugar levels and appetite [5] Market Dynamics - The demand for weight loss drugs has been robust, leading to a significant market presence for both Eli Lilly and Novo Nordisk, with Lilly quickly gaining market share after launching Mounjaro in 2022 and Zepbound in 2023 [6] - Despite a recent reduction in Goldman Sachs' forecast for global sales of anti-obesity medicines to $95 billion by 2030, this still represents a 239% increase from the current $28 billion market [8][9] Financial Performance - Eli Lilly's total sales growth has been impressive, with a 32% increase in the full year and a 45% increase in the most recent quarter [10] - The company's shares are currently trading at 34 times forward earnings estimates, comparable to leading tech companies, indicating strong growth potential [12][14] Competitive Advantage - Lilly's potential oral weight loss drug, orforglipron, could provide a significant advantage over Novo Nordisk's oral semaglutide, as it does not involve strict food and water guidelines [11] - The company combines the growth potential of a tech stock with the stability and dividend growth typical of pharmaceutical companies, making it an attractive investment option [15][16]

Only half of health insurer Cigna's clients currently cover the popular GLP-1 weight loss drugs Wegovy and Zepbound because of their high costs. But the company's pharmacy benefits unit Evernorth has reached a deal with drug makers Ely Lilly and Novo Nordisk which it said will bring prices down for employers and their workers."This solution is really focused towards clients that aren't covering it today, and what it allows us to do is one, to bring it on at a reduced price for the plan sponsor, but also cap ...

Core Insights - Viking Therapeutics is positioned to potentially capitalize on a rapidly growing weight loss drug market projected to reach $150 billion by the early 2030s [1][7] - The company is focused on developing its lead drug candidate, VK2735, which is a dual GLP-1 and GIP receptor agonist aimed at treating obesity [8] - Viking's stock has experienced significant volatility since its IPO, reflecting the inherent risks associated with pre-revenue biopharmaceutical companies [3][6] Company Overview - Viking Therapeutics is a clinical-stage biopharmaceutical company with a narrow pipeline, currently developing two compounds in late-stage clinical trials [6] - The company has no sales or profits, which is typical for pre-revenue firms in the pharmaceutical sector [4] - Viking has a market capitalization of $2.9 billion, indicating potential investment upside if it successfully penetrates the weight loss market [10] Drug Development and Trials - VK2735 has shown promising results in its phase 2 trials, with patients losing up to 14.7% of their body weight in 13 weeks [9] - The company is conducting both injectable and oral versions of VK2735, with the injectable version performing well in trials [9] - Viking is preparing to initiate phase 3 trials for VK2735, with expectations for FDA approval potentially by mid- to late-2028 [10] Financial Position - Viking Therapeutics has over $851 million in cash and no debt, providing a solid financial foundation for ongoing development [11] - The company's cash burn rate was approximately $88 million over the past year, suggesting it has sufficient funding for several years [11]