With the weather warming up, weight loss stocks are scorching hot.
Look at WW International (WW).
As we noted on April 13, WW had a rough run thanks to slowing growth. However, it appears the company may have turned a major corner with the acquisition of Sequence. That acquisition will now allow WW to enter the prescription drug and clinical weight loss segment. As of April 13, WW traded at $6.80. After hitting a high of $10, it’s now at $7.76.
Again, though, with summer around the corner, WW could race higher again.
We also mentioned Novo Nordisk (NVO).
On April 13, NVO traded at $165. It’s now up to $170.71, and still running. Helping, demand for the company’s weight loss treatment Wegovy is still skyrocketing in the U.S., leading it to raise its full-year profit and sales expectations.
In fact, at one point, according to Reuters, U.S. doctors were writing more than 100,000 prescriptions a week for Wegovy. But there was a snag. Unfortunately, with sky-high demand, supply has come under pressure – again. One that resulted in Novo Nordisk “temporarily” cutting supply in the U.S. to “safeguard continuity of care,” as noted in its investor deck.
Fortunately, it’s only expected to be temporary – with the company still “very encouraged” about its ability to scale up manufacturing this year.
There’s also Viking Therapeutics (VKTX).
Over the last few months, VKTX ran from about $10 to $24- and could see higher highs.
All thanks to its potential treatment for obesity – VK2735.
Working much like Eli Lilly’s Mounjaro, which stimulates GLP-1 and GIP, it also triggers a feeling of fullness in the body after eating. Better, it’s nearing Phase 2 trials. All after Phase 1 found that patients treated with VK2735 lost 6% in mean body weight, as compared to a placebo.
Even better, analysts at H.C. Wainwright just raised its price target on VKTX to $33. That’s partly because Viking’s obesity drug could gain exposure to a potential $50 billion obesity market. Even Roth MKM just raised its price target to $24 from $19 on the obesity story. Plus, we have to consider the weight loss and obesity management market is expected to increase from $2.8 billion in 2022 to $13.2 billion by 2029, as noted by Fortune Business Insights.
