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

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Investors: 77                                                             

Pfizer Inc. (NYSE:PFE) is a global company that finds, develops, produces, promotes, distributes, and sells biopharmaceutical pharmaceuticals in Europe and the US.

Pfizer Inc. (NYSE:PFE) recently confirmed that it will proceed with the development of danuglipron, an oral tablet that acts as a GLP-1 agonist and is used to treat weight reduction. This action is a result of the twice-daily formulation’s Phase 2 trial meeting effectiveness targets despite a high rate of patient withdrawals owing to adverse effects.

A notable improvement is that there is no indication of liver damage with the once-daily form of danuglipron. Pfizer is still lagging behind the two market leaders, which have drugs like Zepbound and Wegovy dominating the weight loss market. Pfizer’s new formulation strives to meet obesity’s common medical demands, but it is up against numerous other candidates in clinical trials.

Pfizer reported $14.9 billion in revenue in the first quarter of 2024, a 19% decrease from the previous year. Adjusted EPS was $0.82, whereas reported EPS was $0.55. The company’s other revenues increased by 11%, while COVID-related revenue decreased. Only over $1 billion of Pfizer’s revenue came from its massive M&A activity in Q1 2024, which included purchases worth close to $70 billion. The company estimates that over time, M&A will bring in $25 billion, while newly introduced items will bring in $20 billion.

Pfizer’s weight loss pill portfolio is being expanded in the competitive GLP-1 market by studying two other pills along with danuglipron. Over time, the launch of these therapies may have an effect on key market players’ revenue growth. Tirzepatide (Mounjaro and Zepbound) and Semaglutide (Ozempic and Wegovy), which are now dominating the weight loss market, have established high standards, with tirzepatide demonstrating a mean weight reduction of around 21% and semaglutide ~15%. Danuglipron, marketed by Pfizer, comes up against competition from existing competitors as well as firms that are creating GLP-1 agonists.

As per analysts, PFE has a consensus Buy rating. In the first quarter of 2024, 77 hedge funds out of 920 reported holding a stake in Pfizer Inc. (NYSE:PFE). Paul Cantor, Joseph Weiss, and Will Wurm’s Beech Hill Partners is the largest shareholder in the company, with 102,788 shares worth $66.995 million.

In summary, Pfizer is still a distant rival in the crowded GLP-1 market, despite its encouraging focus on a once-daily danuglipron formulation. Compared to its weight loss medication endeavors, the company’s large M&A moves and its encouraging pipeline may present more dependable growth paths.