Investors have increasingly poured capital into pharmaceutical and biotech companies developing obesity treatments in recent years, as the sector’s strong growth potential gains broad market recognition. The global obesity drug market is projected to reach nearly $100 billion by the end of the current decade. Robust patient demand for existing commercialized weight-loss drugs and their solid revenue performance have further validated the upbeat growth outlook for the industry.
Eli Lilly and Novo Nordisk currently command a dominant position in the weight-loss drug market with their flagship products. Even so, lucrative investment opportunities extend far beyond these two industry leaders. A host of drugmakers are advancing clinical trials for their obesity drug candidates, and are poised to enter this high-growth market in the future. Positive clinical trial readouts and pipeline progress are likely to boost investor sentiment and drive share prices higher. Market analysts predict that two relatively overlooked stocks in this sector have the potential to double in value in 2026.
Viking Therapeutics (VKTX), a clinical-stage biotechnology company focused on therapies for metabolic diseases, is well-positioned to capitalize on the weight-loss drug boom. Its lead candidate VK-2735 has drawn wide industry attention. As a dual GLP-1/GIP receptor agonist, the drug works via mechanisms similar to the blockbuster weight-loss medicines developed by Eli Lilly and Novo Nordisk. Drugs in the GLP-1 class act on key bodily pathways to regulate blood sugar levels and suppress appetite, making them the mainstream focus of obesity drug research and development. For years, Lilly and Novo Nordisk have primarily marketed injectable formulations, and both have recently secured regulatory approvals for their oral weight-loss treatments.
Viking Therapeutics is now conducting Phase 3 clinical trials for the injectable version of VK-2735, and plans to kick off Phase 3 trials for its oral formulation later this year. Encouraging results from earlier-stage trials suggest the candidate will generate substantial revenue for the company once it launches. The firm is also running a maintenance dosing trial for VK-2735, which evaluates the drug’s efficacy for sustained long-term weight loss. Data from this trial is scheduled to be released in the third quarter. The stock has historically been highly sensitive to clinical updates: after positive Phase 2 data came out in February 2024, its share price surged 121% in a single trading session. Should the upcoming third-quarter results beat expectations, Viking’s stock is set for another rally.
AbbVie (ABBV) presents a stark contrast to clinical-stage Viking Therapeutics, as it is an established pharmaceutical giant with a diversified portfolio of commercially available blockbuster drugs spanning immunology, medical aesthetics and neurology. Fueled by its comprehensive product lineup, AbbVie reported a 12% year-over-year increase in quarterly revenue, hitting $15 billion. A successful obesity drug pipeline will serve as a powerful new growth driver for the company. Even if its future weight-loss product fails to match the sales volume of top-tier rivals, it will still deliver a meaningful lift to overall earnings.
Instead of following the mainstream GLP-1 development path, AbbVie has adopted a differentiated strategy by researching long-acting amylin analogs. Amylin helps trigger satiety signals in the brain and slows gastric emptying, delivering notable weight-loss effects. This class of drugs can offer an alternative for patients who cannot tolerate GLP-1 therapies, and may also be combined with GLP-1 treatments down the line to enhance weight-loss outcomes. Earlier this year, ABBV-295, the company’s investigational candidate, yielded positive results from its Phase 1 dosing study. Across different dosing schedules, participants achieved weight loss ranging from more than 7% to over 9%, clearing the way for continued development of the drug.
From a valuation perspective, AbbVie’s forward price-to-earnings ratio currently stands at 15 times, down sharply from more than 24 times recorded several months ago, leaving ample room for valuation recovery. Backed by steady earnings from its existing commercial products and expected progress in clinical trials, the market forecasts that AbbVie’s stock will also double in 2026.
The obesity drug sector boasts solid long-term growth prospects. Apart from the two market leaders, companies with differentiated pipelines and upcoming key research milestones are gaining traction among investors. Viking Therapeutics and AbbVie stand out as compelling alternative investment choices, thanks to their distinct R&D strengths and favorable valuation profiles. Moving forward, clinical data releases and pipeline developments will remain the key catalysts driving the performance of both stocks.
