Introduction
GLP-1 drugs are taking the pharmaceutical world by storm as they skyrocket in demand. With rising obesity cases, drug-making companies are increasingly investing in these medications that regulate blood sugar and curb appetite. Additionally, more and more investors are considering GLP-1 stocks as a major opportunity to gain profits.
Large companies such as Novo Nordisk and Eli Lilly dominate the market, as new players are surfacing. However, it must be remembered that stock prices fluctuate depending on these drugs’ approvals, clinical trial findings, and market demand.
Thinking of investing in GLP-1? In this guide, we take you through GLP-1 stocks, market trends, risks, and what’s on the horizon for future investments.
What Are GLP-1 Drugs?
GLP-1 receptor agonists mimic a natural hormonein the gut that regulates blood sugar and appetite. Specifically, these drugs help people with diabetes and obesity by managing weight and glucose levels.
Popular medications include Ozempic, Wegovy, and Mounjaro, which show promising weight loss effects. With the obesity epidemic fueling GLP-1, the global GLP-1 market is likely to expand significantly in the coming years. In fact, the IQVIA Institute predicts that obesity spending could reach USD 10 billion or more by the year 2027.
Moreover, the success of GLP-1 medications is reshaping the pharmaceutical industry, making these stocks attractive to investors. As more people seek effective weight management solutions, companies leading GLP-1 development only stand to benefit.
Interest in GLP-1 Stocks
Investor interest in GLP-1 stocks has surged due to rising demand for obesity and diabetes treatments. Furthermore, these drugs are proving more effective than traditional weight loss medications. Specifically, pharmaceutical giants with leading GLP-1 drugs are seeing stock price gains, and investors are taking notice.
Key reasons why GLP-1 stocks are booming:
- Global health crisis: Obesity and diabetes rates are increasing. Therefore, this drives demand for effective treatments.
- Blockbuster drug potential: GLP-1 drugs generate billions in revenue. Hence, this makes them major growth drivers for pharmaceutical companies.
- Strong clinical data: Studies show significant weight loss and blood sugar improvements. As a result, it boosts investor confidence.
- New applications: Researchers explore GLP-1 treatments for other conditions, expanding market potential. These include studies on GLP-1’s impact on depression, alcohol use disorder, Parkinson’s Disease, and dementia, to name a few.
Biggest GLP-1 Producing Companies
Several pharmaceutical companies dominate the GLP-1 market. Hence, understanding their financial strength and product pipelines helps investors make strategic decisions.
1. Novo Nordisk (NVO)
- Share price*: DKK 638.40
- Leader in GLP-1 treatments with Ozempic and Wegovy.
- Strong revenue growth, driven by high demand for weight loss medications.
- Expanding production capacity to meet global needs.
2. Eli Lilly (LLY)
- Share price*: USD 929.72
- Mounjaro (tirzepatide) is a game-changer in diabetes and weight loss treatment.
- Future drug approvals could further boost stock performance.
- Competing with Novo Nordisk in the obesity treatment space.
3. Pfizer (PFE)
- Share price*: USD 26.25
- Developing oral GLP-1 drugs, which could disrupt the market.
- Previous weight loss drug setbacks make investors cautious.
- Potential growth opportunities if new formulations succeed.
4. Amgen (AMGN)
- Share price*: USD 310.78
- Exploring next-generation GLP-1-based weight loss drugs.
- Innovative research pipeline could lead to breakthroughs.
- Stock potential depends on clinical trial success.
5. Emerging Biotech Companies
- Several smaller firms such as Aphaia Pharma, Fractyl Health, Syntis Bio, and Zealand Pharma are developing new GLP-1 drugs and new GLP-1 alternatives.
- The stock price of medical device and health tech company Alliurion tripled in January 2025. Specifically, it was after it announced its plan to test its gastric balloon with obesity drugs.
- High-risk, high-reward opportunities for early investors.
- Acquisition potential by major pharmaceutical companies.
These companies drive innovation and shape the GLP-1 investment landscape.
*Price subject to change.
GLP-1 Stock Trends
Recent Market Trends:
- 45 percent increase in prescriptions for GLP-1 drugs (Q4 2024). In particular, Zepbound owned a 56 percent share of new prescriptions.
- Amgen stocks increased by 8 percent over the last 12 months (as of March 2025)
- Novo Nordisk and Eli Lilly stocks have reached all-time highs due to strong GLP-1 sales.
- Investor confidence grows as demand for GLP-1 drugs remains strong.
- Healthcare ETFs and mutual funds increasingly include GLP-1 pharmaceutical stocks.
Factors Influencing GLP-1 Stock Prices:
- Earnings Reports: Strong sales drive stock growth. Meanwhile, missed projections cause dips.
- Regulatory Approvals: FDA approvals can cause spikes. Meanwhile, restrictions may trigger declines.
- Competition: New drug launches impact market share and stock performance.
- Patent Expirations: Generic competition can affect long-term stock value.
Hence, understanding these factors helps investors make smarter stock decisions.
Risks in Investing in GLP-1 Stocks
1. Regulatory Risks
- FDA scrutiny could lead to restrictions or warning labels.
- Safety concerns may impact drug adoption rates.
2. Market Competition
- New biotech startups could introduce innovative alternatives.
- Generic versions may challenge pricing power.
3. Long-Term Efficacy and Safety
- GLP-1 drugs show great promise. But long-term effects remain under study.
- Potential side effects may reduce demand.
4. Stock Volatility
- Prices fluctuate based on trial results, earnings, and market trends.
- Economic downturns can impact investor sentiment.
GLP-1 stocks present strong growth potential. However, these risks require careful consideration.
Is It a Good Time to Buy GLP-1 Stocks?
The GLP-1 market is expanding, and demand remains high. Specifically, investors looking for long-term growth potential may find strong opportunities in this sector.
Key Investment Considerations:
- Short-term vs. long-term outlook: Current prices may be high. But long-term demand is expected to grow.
- Company stability: Novo Nordisk and Eli Lilly offer lower-risk options. Meanwhile, biotech firms present high-risk, high-reward opportunities.
- Diversification: Investing in healthcare ETFs can spread risk across multiple companies.
GLP-1 stocks show promise. Hence, investors should research thoroughly before making decisions.
Conclusion
GLP-1 drugs are revolutionizing diabetes and weight loss treatment, making them a major investment opportunity. In particular, Novo Nordisk, Eli Lilly, and emerging biotech firms are leading this space. Hence, stock prices reflect growing demand. However, it’s important to consider market risks and competition.
Investors seeking exposure to the booming weight loss market should keep an eye on GLP-1 stock trends, drug approvals, and emerging research. As innovation continues, GLP-1 stocks may offer strong long-term returns.
Before investing, analyze market conditions and consult financial experts. Moreover, investors who act strategically may benefit from this evolving market.
Frequently Asked Questions
1. How can I invest in GLP-1 stocks?
You can invest in GLP-1 stocks by buying shares of pharmaceutical companies or through healthcare-focused ETFs and mutual funds. In particular, ETFs stand for “exchange-traded funds.” It’s a type of investment where you trade on stock exchanges, like units of stocks.
2. What stocks are like Novo Nordisk?
If you’re buying Novo Nordisk A/S stock, then you might also want to consider investing in other pharmaceutical companies. Some examples are AstraZeneca (AZN), Novartis (NVS), Sanofi (SNY), and GSK (GSK).
3. Is there an ETF for GLP-1 drugs?
You might want to look into the Roundhill GLP-1 & Weight Loss ETF “OZEM.” Specifically, it’s the world’s first GLP-1 ETF and is an actively managed ETF.
4. Who is the largest shareholder of Novo Nordisk?
The majority shareholder of Novo Nordisk is Novo Holdings A/S. Correspondingly, it holds approximately 28 percent of its shares and 77 percent of its voting shares.
5. Which GLP-1 drug did Pfizer make?
Pfizer discovered and developed Danuglipron, a GLP-1 receptor agonist. Specifically, this investigational medicine aims to regulate blood sugar levels by increasing the amount of insulin released.
6. Is Novo Nordisk a safe investment?
Currently, Novo Nordisk is one of the best stocks to invest in. This is because of its weight loss and diabetes drug offerings that the market is clamoring for.
7. What is the best stock to buy in 2025?
Eli Lilly is among the top 5 best stocks to buy in March 2025, according to an article by Forbes. In particular, the other recommended stocks include Microsoft, United Health Group, Mastercard, and Costco.
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