7 Best Weight Loss Drug Stocks 2025
- The market for diabetes and weight loss drugs is experiencing a significant upswing in 2025, showing strong indicators of growth and presenting potential opportunities for investors.
- A recent study projects a compound annual growth rate of 32.3% in the industry over the next six years.
- This growth is fueled by innovative drugs such as Novo Nordisk A/S’ (NOVO) Wegovy and CagriSema, Eli Lilly and Co.’s (LLY) Zepbound, and Amgen Inc.’s (AMGN) MariTide.
top 7 Weight Loss Drug Stocks Poised for Growth in 2025
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The market for diabetes and weight loss drugs is experiencing a significant upswing in 2025, showing strong indicators of growth and presenting potential opportunities for investors.
Explosive Growth in the Weight Loss Drug Market
A recent study projects a compound annual growth rate of 32.3% in the industry over the next six years. This surge is expected to boost annual sales from $10.5 billion in 2021 to an impressive $173.5 billion by 2031.
This growth is fueled by innovative drugs such as Novo Nordisk A/S’ (NOVO) Wegovy and CagriSema, Eli Lilly and Co.’s (LLY) Zepbound, and Amgen Inc.’s (AMGN) MariTide. The future also looks promising with upcoming drugs like Novo’s oral semaglutide, Lilly’s orforglipron, and Structure Therapeutics inc.’s (GPCR) GLP-1 receptor agonist GSBR-1290 expected to enter the market soon.
Consumer interest is high, with eMarketer estimating that 26% of U.S. adults plan to use a weight loss drug in 2025. These medications are also increasingly included in employer health care packages, although cost limitations can affect availability.
Seven Promising Drug Stocks for 2025
As anti-obesity medications gain traction, which drug stocks offer the most potential for investors? Here are seven industry stocks with a clear path to gains in 2025:
| Stock | YTD Performance* |
|---|---|
| Novo Nordisk A/S (NVO) | 2.4% |
| Eli Lilly and Co.(LLY) | 18.4% |
| Amgen Inc. (AMGN) | 22.9% |
| Pfizer Inc. (PFE) | 0.53% |
| Viking Therapeutics Inc. (VKTX) | -28.7% |
| Structure Therapeutics Inc. (GPCR) | -13.2% |
| Roche Holding AG (OTC: RHHBY) | 23.4% |
*As of the market close on March 6.
Novo Nordisk A/S (NVO)
Novo Nordisk, based in Denmark, has experienced slower share growth in 2025, with a year-to-date increase of only 2.4% and a 20.5% decrease over the past three months. Management has cautioned that tariffs could restrict supply, possibly increasing already high drug prices. Such as, Wegovy, thier weight loss drug, currently costs $499 monthly, down from $650.
Novo CEO Lars fruergaard Jørgensen suggested that if U.S. tariff hikes affect Europe, prices and sourcing costs could rise, impacting bottom-line growth.
The company also faces challenges from MedicareS decision to cut diabetes drug costs by up to 79% following the Inflation Reduction Act. These price cuts, estimated to average 22% by Leerink Partners, are set to begin in 2026, potentially saving U.S. seniors $1.5 billion in out-of-pocket expenses.
Despite these challenges, analysts remain largely supportive. BMO capital’s Evan Seigerman issued a “buy” call on NVO with a target price of $105. The stock closed at $88.04 per share on March 6.
Eli Lilly and Co. (LLY)
In late February,Eli Lilly,headquartered in Indianapolis,announced a significant $27 billion program to advance it’s drug growth in the U.S., as part of a broader $50 billion investment to expand its drug manufacturing operations.
The company’s financial performance is also strong, with earnings per share increasing by 114% to $5.32 on a non-GAAP basis in the most recent quarter, surpassing analysts’ expectations of $5.02 per share.Sales rose by 45% to $13.5 billion, driven by the success of the diabetes drug Mounjaro and the weight loss drug Zepbound.
Wells Fargo analyst Mohit bansal maintained a “buy” rating on LLY with a price target of $1,100.The stock closed at $912.76 per share on March 6.
With a 0.66% forward dividend yield and having doubled its dividend payments since 2023, eli Lilly remains a favorite among investors.
Amgen Inc. (AMGN)
Amgen’s shares have risen by 22.9% year-to-date, closing at $317.82 per share on March 6. The company offers a 3% dividend yield and has increased its dividend for 12 consecutive years. Since 2011, Amgen’s dividend payout has increased nearly 750%. Revenues increased by 19% in 2024 to $33.4 billion, with product sales up 7% for the year.
Amgen’s weight loss drug, MariTide, is entering late-stage development trials, briefly boosting shares in early March. Executives report that MariTide is progressing well and on schedule. A key advantage of MariTide is its once-monthly injection, compared to the weekly injections required by competitors. Early-stage testing showed an average weight loss of 14.5% after three months. Though, a JPMorgan research note suggests investors should remain patient, as MariTide is not expected to be commercially available until 2028.
Pfizer Inc. (PFE)
Pfizer, based in New York, has seen sluggish share price performance in 2025, up only 0.5% year-to-date as of March 6. However, the stock remains popular among defensive investors due to its diverse drug offerings in areas like oncology and specialty care. It offers a high 6.6% forward dividend yield, appealing to conservative investors. Management intends to continue growing the dividend yield. Pfizer reported $63.6 billion in total 2024 revenues, up 52% as 2020.
Pfizer is also testing its once-a-day weight loss drug, danuglipron. CEO albert Bourla stated in January at the JPMorgan Healthcare Conference that Pfizer is “all in” on its weight loss drug strategy and confident in its market position.
Viking Therapeutics Inc. (VKTX)
After a strong performance through most of 2024, Viking Therapeutics has experienced a downturn, with its stock price falling 28.7% year-to-date as of March 6. The company specializes in developing therapies for metabolic and endocrine disorders. VKTX shares declined in early February following a tepid earnings report, particularly concerning its VK2735 experimental obesity-fighting drug.
The company plans to launch a final-phase VK2735 for obesity and diabetes patients in the second quarter of 2025. An oral version of the drug is scheduled for a three-month test later in 2025.
Leerink Partners analyst Thomas Smith noted, “there were no surprises with the earnings update, as VKTX continues to execute across their clinical programs.” He added, “We continue to see fundamental and strategic value for their potentially best-in-class portfolio of obesity and metabolic disease programs.”
Structure Therapeutics Inc. (GPCR)
Structure Therapeutics, based in San Francisco, has seen its shares decline in 2025, falling 13.2% year-to-date and 29.5% in the past three months. However, there is a positive outlook for GPCR. The company reported significant progress with its weight loss drug lineup in its Q4 earnings release and announced a $547 million financing round to support its clinical-stage biopharmaceutical research. The company also has $883.5 million in cash on hand.
Analysts are increasingly supporting the stock, with William Blair initiating coverage with an “outperform” call. Leerink’s David Risinger held a “buy” rating with a $60 target price. GPCR shares closed at $23.53 per share on March 6.
Roche Holding AG (OTC: RHHBY)
Roche, based in Switzerland, has started strong in 2025, with its share price up 23.4% year-to-date. share ownership includes a 3.2% forward dividend yield.While sales of its diabetes drugs Januvia and Janumet have been slow, sales of other drugs have compensated, with Roche reporting Q4 revenues up 7% annually. Share growth is largely attributed to positive clinical trials of its obesity drug, following Roche’s $2.7 billion acquisition of Carmot therapeutics.
Carmot is developing several clinical-stage incretin-based and oral-based obesity and diabetes treatments, with two showing promise in mid-stage testing.
Roche is saving millions in weight loss drug research and development through its acquisition of Carmot and is seeing positive trial results from its pill-based weight loss drug CT-996. Despite side-effect concerns, CT-996 triggered a mean weight loss rate of 7.3% versus 1.2% for placebo participants.
UBS upgraded the stock from “hold” to “buy,” and Bernstein maintained its “buy” rating, signaling a bullish outlook.
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Weight Loss Drug Stocks: A 2025 Investor’s Q&A
The weight loss drug market is booming, and investors are keen to understand the potential opportunities. This Q&A provides answers to common questions surrounding weight loss drug stocks, focusing on companies poised for growth in 2025 and beyond.
Q: Is the weight loss drug market truly experiencing explosive growth?
A: Yes, absolutely.The weight loss drug market is currently experiencing a boom. Projections indicate significant compound annual growth reaching an impressive $173.5 billion by 2031. This growth is fueled by increasing obesity rates, rising awareness of weight-related health risks, and the introduction of highly effective new medications.
Q: What are some of the key drugs driving this growth?
A: Several innovative drugs are leading the charge. These include:
Novo Nordisk’s (NVO) Wegovy and CagriSema: Wegovy has already made a significant impact, and CagriSema shows promising results in clinical trials.
Eli Lilly’s (LLY) Zepbound: Zepbound has rapidly gained popularity due to its efficacy and strong marketing.
Amgen’s (AMGN) MariTide: MariTide is an captivating prospect due to its less frequent injection schedule (once-monthly) compared to competitors, which may increase user adoption.
Upcoming drugs: Oral semaglutide (Novo Nordisk), orforglipron (Eli Lilly), and GSBR-1290 (structure Therapeutics) are also expected to enter the market in the near future, further expanding treatment options.
Q: What factors are contributing to the increased adoption of these drugs?
A: Several factors play a role:
High Consumer Interest: surveys indicate a significant percentage of adults are considering using weight loss drugs.
Employer Healthcare Coverage: More employers are including these medications in their health plans, increasing accessibility. However, cost limitations can still be a barrier.
Increased Awareness: Greater public awareness of the health risks associated with obesity and the potential benefits of these drugs is driving demand.
Q: Which weight loss drug stocks show the most promise for investors in 2025?
A: While past performance is not indicative of future results, several companies are attracting attention:
Novo Nordisk A/S (NVO): While facing potential tariff and pricing pressures, Novo Nordisk remains a dominant player in the diabetes and weight loss market, with established drugs like Wegovy and a strong pipeline.
Eli Lilly and Co.(LLY): Eli Lilly has shown impressive growth driven by Mounjaro (diabetes) and Zepbound (weight loss). Their significant investment in manufacturing expansion signals a commitment to long-term growth.
Amgen Inc. (AMGN): Amgen’s MariTide, with its less frequent dosing schedule, could be a game-changer, even though commercial availability is still several years away. Amgen also has a very solid dividend yield.
Pfizer Inc. (PFE): Pfizer’s overall performance might be sluggish, but their commitment to the weight loss market with danuglipron makes them a stock to watch, particularly for dividend-focused investors.
Viking Therapeutics Inc. (VKTX): Despite a recent downturn,Viking Therapeutics’ VK2735 shows promise,and the company plans to launch final-phase trials soon and warrants watching.
Structure Therapeutics Inc. (GPCR): structure Therapeutics is earlier in its growth cycle, but positive analyst ratings and a strong cash position make them an interesting speculative play.
Roche Holding AG (OTC: RHHBY): Roche’s acquisition of Carmot Therapeutics and positive trial results from CT-996 have boosted its prospects in the weight loss market.
Q: What are the key risks associated with investing in weight loss drug stocks?
A: Several risks should be considered:
High Drug Costs and Reimbursement Challenges: The high cost of these medications can limit access and create challenges for insurance coverage and reimbursement.
Side Effects and Safety Concerns: as with any medication, weight loss drugs can have side effects, and long-term safety data is still being gathered for some of the newer drugs.
Competition: The weight loss drug market is becoming increasingly competitive, which could put pressure on pricing and market share.
Regulatory Scrutiny: Regulatory agencies may impose stricter guidelines or restrictions on the use of these drugs, which could impact sales.
Patent Protection: The expiration of patents could lead to increased competition from generic drugs, impacting profitability.
Supply Chain Issues: As Novo Nordisk has warned, potential tariffs and other supply chain disruptions could impact drug availability and pricing.
Q: where can investors find more information on these stocks?
A: investors should consult a variety of resources:
Company Investor Relations Websites: These websites provide financial reports, press releases, and presentations.
Financial News Outlets: publications, such as the Wall Street Journal, Bloomberg, and Reuters, offer in-depth coverage of the pharmaceutical industry and individual companies.
Analyst Reports: Investment firms publish reports on specific stocks, providing insights into their potential. (Note: these are often behind paywalls).
SEC Filings: publicly traded companies are required to file reports with the Securities and Exchange Commission (SEC), providing detailed financial information.
Q: Disclaimer: This information is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. The weight loss drug market is dynamic, and investment decisions should be based on individual circumstances and risk tolerance.