Weight Loss Drug Stocks Surge in Popularity on Wall Street
The weight loss drug industry is currently one of the hottest trends on the stock market, with shares of companies manufacturing and selling these drugs skyrocketing. Americans now have access to a one-stop solution for weight loss, leading to a surge in the market capitalization of firms in this sector. Investment bank Morgan Stanley believes that Eli Lilly and Company (NYSE:LLY) is one of the premier weight loss drug stocks to watch, with a market capitalization of $745 billion.
Eli Lilly’s weight loss drugs, Mounjaro and Zepbound, have been driving the company’s success. Analysts have set a price target of $818 for the stock, with a street high target of $1,000. If Eli Lilly reaches this milestone, it could become the first non-tech stock on Wall Street to achieve a market capitalization of $1 trillion.
Other weight loss drug stocks, such as Novo Nordisk A/S (NYSE:NVO) and Roche Holding AG (OTC:RHHBY), have also seen significant gains in recent months. Novo Nordisk, in particular, has seen a 73% increase in its share price since March 2023. However, Roche has faced challenges despite its entry into the weight loss market, with investors waiting to see the impact of its acquisition of Carmot Therapeutics.
Despite the recent success of weight loss drug stocks, it’s worth noting that the industry is not new. Roche’s Xenical, approved by the FDA in 1999, was one of the earliest weight loss drugs on the market. However, the company faced sanctions in 2008 for improper sales practices, highlighting the challenges in this sector.
Hedge funds are also taking notice of the potential in weight loss drug stocks, with top picks including Merck & Co., Inc. (NYSE:MRK), Eli Lilly and Company (NYSE:LLY), and Amgen Inc. (NASDAQ:AMGN). Viking Therapeutics, Inc. (NASDAQ:VKTX), Sanofi (NASDAQ:SNY), GSK plc (NYSE:GSK), AstraZeneca PLC (NASDAQ:AZN), and Novo Nordisk A/S (NYSE:NVO) are among the top weight loss drug stocks attracting investor interest.
Overall, the weight loss drug industry is experiencing a surge in popularity on Wall Street, with investors eyeing the potential for significant returns in this sector. As the market continues to evolve, it will be interesting to see which companies emerge as leaders in the growing weight loss drug market.
