Apart from AI technology giants such as Nvidia, weight-loss drug companies have become the most popular trading symbols in recent weeks among investors. The market cap of leading weight-loss drug companies Eli Lilly and Novo-Nordisk is approaching the trillion-dollar club, and it can be said that any pharmaceutical company associated with weight-loss drugs will be sought after.
In the US stock market, any pharmaceutical company involved with weight loss drugs will receive attention from speculators.
Last week, Michael Yee, a senior analyst at investment bank Jefferies, released a report stating that Gilead Sciences may develop its early-stage metabolic drug project towards weight loss direction in the future. According to Yee, Gilead Sciences will present this data at the American Diabetes Association meeting later this week.
Yee's statement last Friday resulted in a 3.6% surge in stock price, the largest single-day increase in nearly a year.$Gilead Sciences (GILD.US)$It was precisely Gilead's clarification of its relationship with the weight loss drug that caused its stock price to fall for two consecutive days, giving back all gains. However, the company announced overnight that its development of "Lenacapavir" has shown 100% efficacy in preventing HIV. As a result, Gilead Sciences surged more than 8%.
But Gilead Sciences quickly clarified that it is a biotech company focusing on cancer and HIV treatment research and development, and does not position itself as a weight loss drug developer. The project mentioned by Yee focuses mainly on liver treatment and is a further investment project in the field of NASH (nonalcoholic steatohepatitis, a metabolic disease usually caused by obesity). Moreover, Gilead Sciences is also conducting a mid-term study to evaluate the possibility of GLP-1 drug combination therapy for NASH.
It was Gilead Sciences' explanation to distance itself from the weight loss drug that caused its stock price to decline for two days, losing all gains. However, the company announced overnight that its research on "lenacapavir" has shown 100% efficacy in preventing HIV. Influenced by this news, Gilead Sciences surged more than 8%.
Gilead Sciences' "weight loss drug storm" proves one thing: there is nothing more attractive to investors in the pharmaceutical stock investment than weight loss drugs.
For example, Zepbound and Wegovy, weight loss drugs respectively launched by pharmaceutical giants Eli Lilly and Novo Nordisk, have received wide attention on Wall Street. Not only Oprah Winfrey, but even Elon Musk has tried these weight loss drugs.
With the boost of weight loss drugs, the market cap of Eli Lilly and Novo Nordisk has approached 1 trillion US dollars, which was an unimaginable achievement for a pharmaceutical company a few years ago.
Even funds holding weight loss drug companies' stocks have performed well.
Jared Holz, medical stock strategist at Mizuho Securities, pointed out that if Lilly did not account for 13% of their portfolio, their medical care industry ETF would not have risen this year.
He emphasized, "In the medical sector, there is nothing comparable to weight loss drugs in terms of creating market value or potential."
This also prompted many large pharmaceutical companies to explicitly state that they want to enter the weight loss drug market and get a slice of the pie. Companies including Roche, AstraZeneca, Amgen, Pfizer and Histogenics are developing their own weight loss drugs.
Even pharmaceutical giant Merck has publicly stated that it is focusing on opportunities in the oral weight loss drug field.
Editor/Somer