12 Best Weight Loss Stocks to Buy According to Hedge Funds

4. Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 68 

Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that develops innovative human medicines for serious diseases, including cancer, cardiovascular conditions, and neurological disorders. It produces biological therapies like Neupogen, Neulasta, Epogen, and Enbrel. Recently, the company has expanded into the GLP-1 weight loss market with drugs such as MariTide and AMG 133, focusing on advancing treatments for weight management.

Amgen Inc. (NASDAQ:AMGN)’s MariTide activates the GLP-1 hormone, promoting fullness, while blocking the GIP hormone, which regulates fat storage and metabolism. Unlike other weight loss medications, MariTide is administered once a month via subcutaneous injection, improving convenience and patient compliance. In clinical trials, MariTide showed promising results. In Phase 1, participants lost an average of 14.5% of their body weight over 12 weeks. In Phase 2, non-diabetic participants lost up to 20% of their weight, while those with Type 2 diabetes lost up to 17% and saw significant improvements in glycemic control.

In the third quarter of 2024, Amgen Inc. (NASDAQ:AMGN) reported a 23% increase in total revenues, reaching $8.5 billion, driven by strong product sales growth, particularly from Tezspire, which saw a 67% increase, and Repatha, which grew by 40%. The corporation achieved an operating margin of 49.6%, demonstrating efficient management despite rising operational costs. Free cash flow totaled $3.3 billion, while R&D spending rose by 35% to $1.4 billion. SG&A expenses increased by 21% year-over-year, and the non-GAAP tax rate dropped to 13.4% which reflected favorable changes in the earnings mix. Additionally, Amgen Inc. (NASDAQ:AMGN) retired $2.5 billion in debt, strengthening its balance sheet and financial position.