Investors continue to search for the next big weight loss drug stocks following the success of Eli Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO). So-called GLP-1 receptor agonists represent a fundamental change in weight loss treatment.
The active ingredients produce substantially greater weight loss than any other drugs on the market. I’d venture a guess that some investors assume that the best returns have already been had. However, there’s lots of evidence suggesting otherwise. Global obesity spending is expected to increase at a compound annual rate as high as 27% between 2024 and 2028.
There’s lots of room left for future treatments to enter the world of weight loss drug stocks.
Altimmune (ALT)
Altimmune (NASDAQ:ALT) is one of the most promising weight loss drug stocks for a very simple, powerful reason.
Clinical weight loss is associated with a decrease in fat mass and muscle mass. The more muscle mass that can be retained, the better. However, GLP-1 agonists from Eli Lilly and Novo Nordisk are associated with significantly higher rates of muscle wasting.
Patients who took Altimmune’s developmental pemvidutide drug experienced a 25.5% decrease in lean muscle mass. Those using the active ingredient in Ozempic and Wegovy experienced a near 40% decline in lean muscle mass associated with weight loss. The drug is also associated with a reduction in liver fat and hepatitis B treatment.
The U.S. Food and Drug Adminstration granted the company a fast track designation for pemvidutide in the treatment of a variant of fatty liver disease. Top line data results should be available for those studies in the first quarter of 2025.
Altamune will certainly be pursuing FDA approval in the future for pemvidutide as a weight loss drug. It is certainly one of the best weight loss stocks to pay attention to in that regard.
Scholar Rock Holdings (SRRK)
Scholar Rock Holdings (NASDAQ:SRRK) is a perfect stock to discuss alongside to Altimmune.
Again, a big part of the reason that alt immune is so attractive is that it spares much more muscle mass than current FDA approved alternatives. That raises an important question: what else can be done to preserve lean muscle mass for patients taking weight loss drugs?
That’s where Scholar Rock Holdings comes into the equation. The company has developed an antibody that acts as a myostatin inhibitor. Myostatin acts to reduce muscle mass. Therefore, inhibiting it has the opposite effect.
The company is testing its antibody for use alongside GLP-1 drugs like Wegovy and Ozempic. Phase 2 data regarding that study is not expected until sometime in mid-2025. However, it’s also reasonable to anticipate that a larger pharmaceutical firm may acquire Scholar Rock Holdings before then. The next 12 months should be very interesting for SRRK shares and investors.
Structure Therapeutics (GPCR)
Structure Therapeutics (NASDAQ:GPCR) is keying in on one of the more important aspects of weight loss drug delivery: pills are preferable to injections. That makes GPCR stock one to watch moving forward.
The company currently has two weight loss pills in clinical trials. One of the pills is a GLP-1 drug like Ozempic and Wegovy. The company is also testing another drug to be used in combination with GLP-1 drugs. That drug is expected to improve muscle wasting associated with GLP-1 drug administration.
Additionally, Structure Therapeutics has multiple GLP-1 drug candidates in pre-clinical studies at the moment. GPCR is not the only firm developing orally administered weight loss drugs at the moment. Better-known firms including Pfizer (NYSE:PFE) and others are also developing pill form therapeutics.
That said, Structure Therapeutics remains highly attractive for its pure play upside relative to larger firms. The company is also relatively well established with a share price of approximately $36. Current analyst consensus suggests that share prices should rise to $82. The high target price of $93 suggests upside of nearly 200% for investors who pull the trigger now.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
