10 Best Weight Loss Drug Stocks to Buy According to Analysts

7. Dr. Reddy’s Laboratories Limited (NYSE:RDY)

Price Target Upside: 27.34%

Dr. Reddy’s Laboratories Limited (NYSE:RDY), based in Hyderabad, India, is a multinational pharmaceutical company that manufactures and markets a wide range of products, including generic drugs, active pharmaceutical ingredients (APIs), and biosimilars.

Dr. Reddy’s Laboratories Limited (NYSE:RDY) is actively involved in the weight loss and health management sector, offering products like Celevida Maxx Sachet which is a high-protein nutritional supplement designed to aid muscle gain and weight loss. The product features a triple-action formula that helps reduce appetite, burn calories, and support overall health without added sugar.

The company is also researching semaglutide, the active ingredient in weight loss medications like Wegovy and Ozempic. Dr. Reddy’s Laboratories Limited (NYSE:RDY) is positioning itself as one of the best weight loss drug stocks by receiving approval from India’s drug regulatory authority to conduct a bioequivalence study for semaglutide, which could potentially allow the company to bypass a full phase-III clinical trial and enter the growing weight loss drug market. Additionally, the corporation offers Celevida, a health drink for diabetes and weight management, complementing its range of weight management solutions in the Indian market. The company is positioning itself to tap into the lucrative global weight loss market, aligning with trends in GLP-1 receptor agonist development.

On January 23, 2025, Dr. Reddy’s Laboratories Limited (NYSE:RDY) announced impressive Q3 FY25 results. The company’s consolidated revenue totaled ₹8,359 crores ($977 million), a 16% YoY increase. EBITDA increased 9% year over year to ₹2,298 crores ($269 million), while the gross profit margin rose marginally to 58.7%. A little 2% increase in net profit to ₹1,413 crores ($165 million) was recorded. New product releases, improved operational efficiencies, and the successful integration of the Nicotine Replacement Therapy (NRT) business were the main drivers of this expansion. The rise in underlying revenue prior to the NRT acquisition was 7.5%.