12 Best Weight Loss Stocks to Buy According to Hedge Funds

6. Novo Nordisk A/S (NYSE:NVO)

Number of Hedge Fund Holders: 61 

Novo Nordisk A/S (NYSE:NVO), founded in 1923 and based in Denmark, is a global healthcare company focused on discovering, developing, manufacturing, and marketing pharmaceutical products. Its primary areas of focus include diabetes care, obesity treatment, hemophilia management, growth hormone therapy, and hormone replacement therapy. The company’s key products include insulin brands (NovoLog/NovoRapid), GLP-1 medications (Ozempic, Wegovy), hemophilia treatments (NovoSeven), and growth hormone therapies (Norditropin).

Novo Nordisk A/S (NYSE:NVO) is developing an oral weight loss pill called amycretin, which targets both amylin and GLP-1 receptors to regulate hunger and blood sugar. In Phase 1 trials, amycretin led to up to 13% body weight loss over 12 weeks, with mild gastrointestinal side effects. Other weight loss treatments in development include CagriSema, which helped patients lose 17% of their body weight in trials, and oral semaglutide as an alternative to injectable Wegovy.

In Q3 2024, Novo Nordisk A/S (NYSE:NVO) reported strong financial performance, with a 24% increase in total sales and a 22% rise in operating profit at constant exchange rates. GLP-1 sales, including diabetes and obesity treatments, grew by 26%, with North America seeing a 32% increase and international operations growing by 16%. Sales in obesity care surged by 44%, driven by a 77% global increase in Wegovy sales, including a 50% growth in North America and a 95% increase in international markets.

The obesity treatment market is competitive, with Eli Lilly’s Zepbound and tirzepatide as major rivals. Novo Nordisk A/S (NYSE:NVO) is investing in manufacturing to meet growing demand, particularly for Wegovy. The company plans larger studies to assess the long-term efficacy and safety of its treatments, with a broader focus on improving overall health and addressing comorbidities like hypertension and heart disease. The stock currently holds a Moderate Buy rating.