10 Best Weight Loss Drug Stocks to Buy According to Analysts

In this article, we will be taking a look at the 10 best weight loss drugs to buy according to analysts.

Global Surge in Obesity Medication Market Driven by GLP-1 Drugs

Most people have tried to include fitness and weight loss into their everyday routines. Due to the immediate physical and psychological benefits of increasing one’s fitness, the weight loss and fitness sector is rather large globally. The WHO estimates that over one billion individuals worldwide—650 million adults, 340 million adolescents, and 39 million children—are obese. A brand-new class of weight-loss drugs that don’t require rigorous diets or exercise routines appears to be ground-breaking. These innovative drugs can help people who are overweight or obese shed 15% to 20% of their body weight. According to Andy Acker, portfolio manager at Janus Henderson Investors, “This may be the largest opportunity we’ve ever seen in the pharmaceutical industry.”  Medication for weight loss is very popular. Investors are comparing the US top in weight-loss medications with the leading in artificial intelligence chips.

Morgan Stanley Research has increased its prediction for the global market for obesity medications from $77 billion to $105 billion by 2030 in light of this demand increase. In 2023, brand-name obesity drugs brought in almost $6 billion.

According to Forbes, Semaglutide, a market leader for obesity drugs and the generic version of Ozempic, Wegovy, and Rybelsus, was the most prescribed Glucagon-Like Peptide-1 GLP-1 agonist in 2023. Nearly 88% of all new prescriptions were for it. Tirzepatide, Liraglutide, and Semaglutide are the only three GLP-1 weight-control drugs currently approved by the FDA.

According to JP Morgan Research, obesity and diabetes will drive the GLP-1 market’s growth to $100 billion by 2030. By that year, there may be 30 million GLP-1 users in the US or around 9% of the total population. Increased demand for obesity medications will benefit some industries, such as biotech, while posing problems for others, such as the food and beverage sector.

Chris Schott, a Senior Analyst with expertise in the U.S. Diversified Biopharma sector, claims:

“GLP-1s have been used to treat T2D since 2005, starting with the approval of Byetta, with follow-on products continually improving on efficacy. The most recent, Ozempic and Mounjaro, offer significant advantages over previous products and have accelerated class growth,” “Indeed, the newest generations of GLP-1s and combos lead to 15-25+% weight loss on average, well above prior generations of products.”

Challenges and Accessibility Issues in the GLP-1 Weight Loss Medication Market

The latest generation of GLP-1 medications are being hailed by some as “miracle drugs” that can cure obesity. However, not all obese persons can utilize GLP-1s due to their high cost and restricted insurance coverage. At the current rate, treating 40% of obese Americans would cost more than $1 trillion annually, according to Jonathan Gruber, an economics professor and the chairman of MIT’s economics department. That is nearly equal to what the government spends on Medicare as a whole. That is a startling amount.

The usage of GLP-1 drugs, such as semaglutide, for weight loss has increased over the past decade, whereas among those with type 2 diabetes, it has decreased by roughly 10%, per a report published in the Annals of Internal Medicine. The prolonged medicine shortage that results could restrict diabetics’ access to the treatments, the experts caution. As the need for obesity drugs rises, it is imperative to guarantee that diabetic patients have access to GLP-1 medicines, stressed Dr. Yee Hui Yeo, a clinical fellow in Cedars-Sinai’s Karsh Division of Gastroenterology and Hepatology.

The FDA says the shortages are a result of rising demand. The GLP-1 medication scarcity is a “major public health concern” that is unlikely to be addressed in 2024, according to the European Medicines Agency, suggesting that the shortages are not limited to the US. NPR reports that some people with diabetes have had to cut back on the number of drugs they can take due to shortages that have made it difficult for them to have their prescriptions filled.

Julia Angeles of Baillie Gifford, Debra Netschert of Jennison Investments, and Gentry Lee of Fayez Serofim were among the panelists on “Weighing the Future of Obesity Drugs,” which discussed the potential of GLP-1 medications, which were initially developed to treat diabetes but are now being used to treat obesity. The evolution of GLP-1 medication delivery from weekly dosages to several daily injections was also noted by Netschert, who also emphasized current attempts to further reduce injection frequency and minimize adverse effects. Notwithstanding their remarkable effectiveness, 1.5 million of the 110 million eligible patients in the US are currently undergoing treatment with GLP-1 drugs, according to Netschert, because of supply constraints.

In their dispute over who should pay, Angeles claimed that the majority of patients paid cash, while Netschert cited large insurance and Medicare/Medicaid reimbursements. Up to 700 million individuals worldwide may need these drugs outside of the United States, according to Netschert. Notably, the panel discovered that the UK had the fastest approval rate of GLP-1 drugs of any nation, demonstrating the recognized worth of these drugs. In general, UK payors are strict.

Our Methodology 

For this article, we selected stocks that demonstrated over 10% analyst upside, had a market cap above $2 billion and were backed by strong institutional ownership. We then ranked these stocks based on their price target upside.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Here is our list of the 10 best weight loss drug stocks to buy according to analysts.

10. AstraZeneca PLC (NASDAQ:AZN)

Price Target Upside: 20.92%

AstraZeneca PLC (NASDAQ:AZN) develops and sells prescription medications across various therapeutic areas, including oncology, cardiovascular, and respiratory diseases. The company is notable for its innovative approach to obesity treatment, with its experimental drug AZD5004 showing promise as an oral GLP-1 receptor antagonist.

AstraZeneca PLC (NASDAQ:AZN)’s lead candidate for weight loss treatment is AZD5004, an oral GLP-1 receptor antagonist acquired from Eccogene in 2023. In Phase I trials, it showed promising results, with type 2 diabetes patients losing an average of 5.8% of their weight over four weeks. AZD5004 is currently in Phase 2b trials for obesity and type 2 diabetes, with results expected in late 2025 and early 2026. The drug is generally well-tolerated, though some gastrointestinal side effects have been noted at higher doses. Its target market includes obese patients with type 2 diabetes, positioning it as one of the best weight loss drug stocks.

AstraZeneca PLC (NASDAQ:AZN) is also advancing AZD6234, a long-acting amylin receptor agonist, designed to manage appetite and slow gastric emptying. Early trials showed a significant reduction in body weight compared to a placebo, with no major side effects. AZD6234 is in Phase 2 and 2b trials and is aimed at individuals who cannot tolerate existing GLP-1 obesity treatments.

The company is exploring combination therapies, such as AZD6234 with AZD9550, a GLP-1/glucagon dual agonist, for a once-weekly treatment. Additionally, AZD5004 may be combined with other drugs like Farxiga and AZD0780 to improve efficacy.

AstraZeneca PLC (NASDAQ:AZN) is further strengthening its position in the weight loss market by investing $80 million in SixPeaks Bio, a startup developing a weight loss antibody that preserves muscle mass. The company has an option to acquire SixPeaks once it reaches the investigational new drug filing stage.

9. Pfizer Inc. (NYSE:PFE)

Price Target Upside: 21.37% 

Pfizer Inc. (NYSE:PFE), standing ninth among the best weight loss drugs to buy according to analysts, is a global pharmaceutical company specializing in innovative medicines, vaccines, and healthcare products sold worldwide. While traditionally focused on various medical conditions, the company is now entering the obesity treatment market with danuglipron, an oral GLP-1 receptor agonist for weight loss. This positions the company as a potential competitor in the rapidly growing weight loss drug sector, attracting significant investor interest.

Pfizer Inc. (NYSE:PFE) is focusing on oral GLP-1 receptor agonists for weight loss, aiming to provide a convenient alternative to injectables. Its lead candidate, danuglipron, is being developed as a once-daily pill after discontinuing the twice-daily version due to side effects. A dose optimization study is planned for late 2024 following promising Phase 2b results showing 8%-13% weight reduction. Additionally, the corporation is advancing other weight loss drugs, including a once-daily GLP-1 pill in Phase 1 and a GIP inhibitor set for Phase 2 trials in 2024.

Pfizer Inc. (NYSE:PFE) is prioritizing oncology for future growth, aiming to add blockbuster drugs by 2030. It invested $43 billion in acquiring Seagen to strengthen its pipeline and may pursue further acquisitions. Management projects 10%-18% earnings growth in 2025, with analysts estimating 14% annual growth over the next 3-5 years. The company also offers a strong 6.3% dividend yield, with the dividend recently increased by 2.4%, making it a top vaccine stock choice among hedge funds.

8. Viatris Inc. (NASDAQ:VTRS)

Price Target Upside: 21.51% 

Viatris Inc. (NASDAQ:VTRS) stands eighth among the 10 best weight loss drugs to buy according to analysts. It develops and distributes generic and branded medicines across 165+ countries. With a portfolio of over 1,400 approved molecules, it serves various therapeutic areas, including cardiovascular and respiratory conditions. The company’s unique hybrid model bridges generics and branded drugs, allowing it to offer affordable, high-quality medicines while adapting to diverse global healthcare markets.

Viatris Inc. (NASDAQ:VTRS) is making significant strides in the weight loss market by developing generic versions of Novo Nordisk’s popular weight loss drugs, Ozempic and Wegovy, both containing semaglutide. The company has submitted applications for these generics to regulatory authorities, signaling its commitment to providing more affordable alternatives. These applications are currently under review.

Viatris Inc. (NASDAQ:VTRS) is also challenging Novo Nordisk’s patents on semaglutide. The company successfully initiated a review of U.S. Patent No. 10,335,462, which covers dosage regimens for semaglutide in diabetes and obesity treatment. The U.S. Patent and Trademark Office will conduct an inter partes review, with a decision expected by October 2025. If successful, the company’s generic version could significantly lower costs and expand access to weight loss medications.

Despite competition from newer drugs like Eli Lilly’s Mounjaro (tirzepatide), Viatris Inc. (NASDAQ:VTRS) believes semaglutide still has a strong market presence, similar to how older drugs like Trulicity remained relevant. Clinical trials have shown that semaglutide leads to substantial weight loss, with 77.1% of participants achieving at least a 5% reduction in weight. A generic version could provide a cost-effective option for a wider population.

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%.

6. Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX)

Price Target Upside: 27.71% 

Amneal Pharmaceuticals, Inc. (NYSE:AMRX) specializes in generic and specialty drugs, providing affordable medicines to the U.S. and global markets.

Amneal Pharmaceuticals, Inc. (NYSE:AMRX) is expanding its presence in the weight loss and metabolic disease sector through a strategic collaboration with Metsera, Inc., announced in October 2024. This partnership positions the company as a key player in the growing obesity treatment market by leveraging Metsera’s innovative drug portfolio and its own manufacturing capabilities.

As part of the agreement, the corporation will serve as Metsera’s preferred supply partner in the U.S. and Europe while gaining commercialization rights in select emerging markets. To support this expansion, Amneal Pharmaceuticals, Inc. (NYSE:AMRX) is investing $150–$200 million over the next four to five years to build two manufacturing facilities in India for peptide synthesis and sterile fill-finish production. The company will also assist in product development, including drug formulation and drug-device innovation.

Amneal Pharmaceuticals, Inc. (NYSE:AMRX) and Metsera aim to develop next-generation weight loss therapies, including MET-097, an ultra-long-acting GLP-1 receptor agonist that demonstrated promising Phase 1 trial results, with a 7.5% weight reduction in 36 days. The collaboration also focuses on oral and injectable treatments, including NuSH analogs, designed to address the growing demand for obesity and diabetes therapies.

Amneal Pharmaceuticals, Inc. (NYSE:AMRX)’s expansion into biologics manufacturing strengthens its market position beyond small molecules. In November 2024, the company secured U.S. FDA approval for Exenatide, its first generic GLP-1 injectable, further solidifying its role in the weight loss and diabetes treatment landscape.

Amneal Pharmaceuticals, Inc. (NASDAQ:MRX) reported strong Q3 2024 results with net revenue of $702 million, a 13% increase from last year. Generics revenue grew by 9%, while specialty revenue surged 19%, driven by neurology and endocrinology products. Adjusted EBITDA reached $158 million, up 2%, and adjusted EPS was $0.165. Year-to-date, the company earned $2.68 billion, boosted by strong generics performance, new product launches, and biosimilars. Despite a small GAAP net loss of $0.2 million, the corporation remains focused on high-margin products to enhance profitability.

5. GSK plc (NYSE:GSK)

Price Target Upside: 28.28%

GSK plc (NYSE:GSK) develops and markets a wide range of healthcare products, including vaccines, specialty medicines, and general medicines. Its portfolio includes prescription drugs, over-the-counter medications, and vaccines targeting a variety of diseases and conditions.

GSK plc (NYSE:GSK) has been involved in the weight loss market with its over-the-counter product, alli (orlistat 60 mg), which was approved by the European Commission in 2009 as the first non-prescription weight loss aid in Europe. Alli works by preventing the absorption of some dietary fat in the digestive system, helping users lose 50% more weight when combined with a reduced-calorie diet. Despite initial success, Alli has faced challenges, including declining sales and a 2014 recall in the U.S. and Puerto Rico. The corporation continues to invest in weight management solutions and supports obesity-related research and consumer programs, positioning itself as one of the best weight loss drug stocks.

For fiscal Q4 2024, GSK plc (NYSE:GSK) released impressive financial results that showed a robust increase in all important parameters. In 2024, its core operating profit increased by 13% while its sales increased by 8% to nearly £31 billion. Core profits per share (EPS) increased by 12% as well.

GSK plc (NYSE:GSK)’s Specialty Medicines business saw a 19% increase in sales, which was credited with this success. Its oncology revenues almost doubled to over £1.4 billion in 2024, while its HIV sales increased by 13%. With five new product approvals expected in 2025 and 11 successful phase III studies reported in 2024, the company is steadily bolstering its pipeline. These include depemokimab for severe asthma and Blenrep for multiple myeloma.

4. Merck & Co., Inc. (NYSE:MRK)

Price Target Upside: 34.43% 

Merck & Co., Inc. (NYSE:MRK) develops and markets prescription medicines, vaccines, biologic therapies, and animal health products.

In December 2013, Merck & Co., Inc. (NYSE:MRK) launched HMR Weight Management Services Corporation in the U.S., combining structured diet plans, behavior coaching, and physical activity programs to achieve clinically significant weight loss and reduce the risk of chronic illnesses like diabetes and cardiovascular disease.

Merck & Co., Inc. (NYSE:MRK) is shifting its focus towards developing small molecule oral GLP-1 medications for weight loss, rather than injectable alternatives, positioning itself in the rapidly expanding oral GLP-1 space. The company also secured a $2 billion licensing deal with Chinese drugmaker Hansoh Pharma in December 2024 for an experimental weight loss pill. This strategic move strengthens its presence in the obesity treatment market, establishing Merck as one of the best weight loss drug stocks.

In its R&D efforts, Merck & Co., Inc. (NYSE:MRK) is developing next-generation GLP-1 therapies with additional cardiometabolic benefits. These drugs target conditions like metabolic dysfunction-associated steatohepatitis (MASH) and non-alcoholic fatty liver disease (NAFLD). The corporation is also advancing efinopegdutide, a peptide therapeutic for MASH and NAFLD treatment, which received FDA Fast Track designation in 2023. This strategy helps Merck & Co., Inc. (NYSE:MRK) stand out in the competitive obesity treatment market.

3. Zoetis Inc. (NYSE:ZTS) 

Price Target Upside: 35.24% 

Zoetis Inc. (NYSE:ZTS) is a global animal health company that focuses on the discovery, development, manufacture, and commercialization of vaccines, medicines, biodevices, genetic tests, diagnostic products, and precision animal health. It stands third among the best weight loss drugs to buy according to analysts.

Zoetis Inc. (NYSE:ZTS) is addressing pet obesity through various products and initiatives. For dogs, it developed Slentrol (dirlotapide), the first FDA-approved medication for canine obesity. This drug works by reducing appetite and food intake, with studies showing a mean weight loss of 11.8% over four months.

For cats, the company offers products like CliniCare RF Feline Liquid Diet with renal impairment and Rebound Recuperation Formula, a low-calorie liquid supplement to support healthy eating during recovery.

Zoetis Inc. (NYSE:ZTS) has also developed diagnostic tools like Vetscan Imagyst, an AI-powered system to monitor pets’ health during weight loss programs. The corporation promotes pet owner education through initiatives like BARC (Body Assessment Rating for Canines) and encourages communication with veterinarians about weight management. Ongoing research and development efforts are focused on advancing pet health solutions.

Zoetis Inc. (NYSE:ZTS) had a strong financial year, with a total revenue of $9.3 billion, reflecting an 8% increase overall and 11% growth in operational revenue. The companion animal portfolio saw significant growth, especially with products like Simparica and Librela. Revenue from livestock also increased, which was driven by innovative vaccines and solutions. The company’s profitability improved, with adjusted net income rising 10% to $2.7 billion. Key drivers of growth included popular treatments for pet arthritis and skin conditions, as well as a strong performance in the U.S. and international markets. Looking ahead, Zoetis Inc. (NYSE:ZTS) expects continued growth in 2025, with revenue and net income projected to increase by 6% to 8%.

2. Perrigo Company plc (NYSE:PRGO)

Price Target Upside: 38.12% 

Perrigo Company plc (NYSE:PRGO) is a global leader in over-the-counter health and wellness products, offering a wide range of self-care items like pain relievers, gastrointestinal remedies, and infant formulas. What sets the company apart is its focus on affordable, high-quality OTC alternatives, positioning itself as a leader in the self-care market. This strategy taps into the growing trend of consumer-driven healthcare, where people seek cost-effective solutions for managing their health.

Perrigo Company plc (NYSE:PRGO) offers a range of weight loss and health products to support consumers in achieving their lifestyle goals. Their weight management solutions include clinically proven products, along with Nicotine Replacement Therapy (NRT) like NiQuitin, which can indirectly support weight loss by helping users quit smoking. They also provide nutritional supplements such as the Glucose 15TM Lemon Oral Gel for blood sugar management and various vitamins and minerals to support overall health during weight loss, making it one of the best weight loss drug stocks.

To further assist consumers, Perrigo Company plc (NYSE:PRGO) offers step-by-step weight loss programs, healthcare professional training, and emphasizes affordability and accessibility in its product offerings. Their holistic approach to health includes not just weight loss, but also addressing factors like sleep, stress management, and general nutrition, ensuring a comprehensive approach to improving overall well-being.

In Q3 2024, Perrigo Company plc (NYSE:PRGO)’s net sales decreased by 3.2%, with organic sales down 2.4%. However, the company showed improvement in profitability, with gross margin rising by 160 basis points to 41%, and operating income growing by 21.3%. Earnings per share (EPS) increased by 26.6%. Cost-saving initiatives like Project Energize and the supply chain reinvention program contributed $95 million and $72 million in gross savings, respectively. Despite the sales decline, the company’s strategic shift towards higher-value products and a strong cash position of $1.5 billion, positions the company well for future growth and investments.

1. Teva Pharmaceuticals Industries Limited (NYSE:TEVA)

Price Target Upside: 44.39% 

Teva Pharmaceuticals Industries Limited (NYSE:TEVA) is a global leader in developing, manufacturing, and distributing generic drugs, with a portfolio of over 3,500 products across various therapeutic areas.

In June 2024, Teva Pharmaceuticals Industries Limited (NYSE:TEVA) launched the first-ever authorized generic version of Victoza (liraglutide) injection in the U.S., marking a major milestone as the first generic GLP-1 product available for patients with type 2 diabetes. This move is expected to improve the accessibility and affordability of diabetes treatment. Liraglutide, sold as Saxenda for weight management, opens a potential pathway for weight loss solutions, and Teva Pharmaceuticals Industries Limited (NYSE:TEVA) has expressed plans to launch a generic version of Saxenda in the future.

The company is also exploring other medications that could impact weight management. While not directly focused on weight loss, its research into Ajovy (fremanezumab) for migraines has shown effectiveness in reducing attacks in patients with obesity, addressing a common comorbidity. Additionally, the development of TEV-749 (olanzapine) for schizophrenia reflects Teva Pharmaceuticals Industries Limited (NYSE:TEVA)’s broader commitment to addressing conditions that can influence weight.

Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced $16.5 billion in revenue for the fourth quarter of 2024, a 9% year-over-year gain. Adjusted EBITDA also increased by 9%, and non-GAAP EPS increased by 10%. This expansion included all business areas, including APIs, generics, and new products. Strong revenue performance combined with efficient expense control is reflected in the total profitability improvement.

Overall, TEVA ranks first among the 10 best weight loss drugs to buy according to analysts. While we acknowledge the potential of TEVA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TEVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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