10 Best GLP-1 and Weight Loss Stocks to Buy Now

8. Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN)

Number of Hedge Fund Investors: 36

The goal of Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) is to create revolutionary life sciences products. Following Pfizer’s acquisition of its parent firm in 2022, Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) was founded and has given priority to several medication candidates undergoing various phases of clinical testing. Among its many pipeline products, Taldefgrobep Alfa (BHV-2000) is particularly noteworthy for its potential to treat obesity.

Taldefgrobep Alfa is scheduled for Phase 2 studies for obesity in 2024 and is presently undergoing Phase 3 clinical trials for Spinal Muscular Atrophy (SMA). This medication, a myostatin inhibitor, works to prevent muscle loss disorders by preventing the myostatin protein, which normally prevents the development of muscle. Given that increasing muscle mass might help weight reduction and improve metabolism, the drug is a good choice for treating obesity.

Taldefgrobep Alfa received a rare pediatric disease classification for SMA from the FDA, which might hasten the licensing process and signal a more favorable regulatory position. In order to ascertain the drug’s safety and effectiveness for managing weight, the Phase 2 obesity study, which is set to begin in 2024, will be crucial.

Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) has roughly $283.42 million in cash as of Q1 2024. Given the potential of Taldefgrobep Alfa, particularly in the event that Phase 2 findings are favorable, investor confidence and stock value may rise for BHVN. The stock is placed 8th on our list of the best GLP-1 and weight loss stocks to buy now.

Analysts have given BHVN a “Strong Buy” rating. The average price target for Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) is $54.7, which presents a 41.26% upside potential from the current price of $38.73. According to Insider Monkey’s Q1 2024 database, 36 hedge funds held a position in the company.

In light of BHVN’s relatively limited cash reserves and the possibility of future dilution, investors should exercise caution. Any unfavorable trial findings for Taldefgrobep Alfa can have a detrimental effect on the stock and raise the danger of dilution. Though there are challenges involved, you cannot overlook the company’s drug’s novel approach to treating obesity and the continued progress made in other treatment opportunities.