Oppenheimer analyst Jay Olson suggests alternative investment strategies in the obesity drug market, focusing on companies like Amgen and Viking Therapeutics, which have potential in treating obesity-related comorbidities.
Eli Lilly and Novo Nordisk, initially targeting diabetes, have pivoted towards obesity drugs, underscoring the close relationship between obesity and various other health issues like heart disease, sleep apnea, and NASH (non-alcoholic steatohepatitis).
Amgen and Viking are developing obesity medications that show promise in early trials, with Amgen’s drug demonstrating a 14.5% weight loss over 12 weeks and Viking’s achieving an 8% reduction over 28 days. Amgen, known for its cholesterol drug Repatha, might combine it with its obesity treatment for enhanced cardiovascular risk reduction.
Viking’s NASH drug, showing significant liver fat reduction in trials, could potentially be combined with its obesity treatment. While these developments are speculative, Amgen’s established financial position and Viking’s rapid stock value growth indicate a dynamic market.
Olson anticipates a drop in obesity medication prices with increased competition, especially with Amgen’s entry, known for reducing its drug prices for market penetration.
