The Obesity ETF·Financial Services
The investment seeks investment results that correspond generally to the performance, before fees and expenses, of an index which is designed to track the performance of companies globally that are positioned to profit from servicing the obese, including biotechnology, pharmaceutical, health care and medical device companies whose business is focused on obesity and obesity related disease and companies focused on weight loss programs, weight loss supplements, or plus sized apparel. The fund invests at least 80% of its net assets in the stocks that comprise the Solactive Obesity Index. It is non-diversified.
Financial Services
Asset Management - Global
2016-06-08
0.70

Eli Lilly's newer weight-loss medicines will help cement its dominance in the market. The company could ride this tailwind through the medium term and deliver strong returns.

Eli Lilly and Company (NYSE:LLY | LLY Price Prediction) and Novo Nordisk A/S (NYSE:NVO) reported quarterly results in early February, and the gap between them has widened significantly.

Structure Therapeutics (GPCR) is initiated with a BUY rating and $110 price target, reflecting a 101% upside from current levels. Aleniglipron, GPCR's oral GLP-1 agonist, demonstrated 16.3% placebo-adjusted weight loss at 44 weeks with superior safety and manufacturing cost advantages. GPCR's $1.4B cash position provides runway through 2028 and a valuation floor of $23.10 in a bear scenario.

The rising popularity of GLP-1 drugs is a big reason why investors are bullish on the anti-obesity market. GLP-1 drugs, however, need to be taken on an ongoing basis and come with risks.

LLY wins FDA nod for oral obesity pill Foundayo, boosting shares as it eyes billions in sales and a fast catch-up to rivals in the booming GLP-1 market.

Foundayo (orforglipron) has a serious advantage over Novo Nordisk's Wegovy pill. Retatrutide, a subcutaneous triple hormone receptor agonist in phase 3 trials, could be a game changer.