2 Next-Gen Weight Loss Stocks Worth Buying Right Now

While there is some ambiguity surrounding the term “next generation” when it comes to weight loss therapies, one thing is clear: unlike the current generation of weight loss drugs, ideal weight loss drugs will not cause patients to lose muscle mass in while these” be treated.

The first business to develop one of the most ideal weight loss drugs is likely to make a significant profit. There are already a few companies in particular that have up-and-coming candidates that could fit into this project, so let’s take a look at each of them, as both are worth buying.

1. Eli Lilly

As a player in the weight loss market, Eli Lilly (LLY 0.18%) is best known for its blockbuster drug Zepbound, which is indicated for treating obesity. In the second quarter alone, Zepbound’s sales were worth more than $1.2 billion. But the company is in the process of doing a lot more research and development (R&D) in cardiometabolic medicine, and while it has many next-generation candidates, one stands out as particularly promising.

Lilly is currently conducting a phase 2 clinical trial investigating whether its antibody called bimagrumab is helpful for weight loss, either when used alone or when used with Novo Nordiskthe drug semaglutide, which is known under the trade names Ozempic and Wegovy. Specifically, the study looks at whether bimagrumab is able to protect muscle mass during semaglutide treatment or even increase it, despite the patient’s weight loss.

There’s reason to believe Lilly will find the beneficial effects she’s looking for here. In an earlier phase 2 study conducted by third-party researchers investigating the candidate’s effects in patients with both type 2 diabetes and obesity, the results were phenomenal. After 48 weeks of treatment, patients lost an average of 20.5% of their total fat mass, while actually gaining 3.6% of their lean mass, significantly trimming their waistlines, reducing their total body weight by 6.5% and improving blood glucose levels. too. The rates of experiencing side effects, as well as the intensity of side effects, were quite similar between the treatment and placebo groups.

Lilly’s study of bimagrumab is expected to conclude in mid-2025. If the results agree with those of the other studies, the company will no doubt want to advance the program into Phase 3 trials and then commercialization, assuming the regulatory authorities regulation give it the green light.

If it is eventually approved for sale, it likely won’t struggle to gain market share, even in the face of determined opposition. A weight loss drug that effectively liquidates fat around the abdomen while gently stimulating muscle growth is a clear winner, and so far, there is nothing else on the market that can compare. And combined with Lilly’s extensive efforts to make other anti-obesity drugs, its stock could get a significant boost if Phase 2 results look favorable, so that’s one more reason to buy the stock now.

2. BioAge Labs

BioAge Laboratories (BIO 4.94%) is still working on launching its first drug, but its lead candidate could offer a highly compelling set of advantages over the current crop of weight-loss drugs. This program, called azelaprag, could also help patients lose weight by preserving or perhaps even increasing lean muscle mass.

Azelaprag is currently in phase 2 clinical trials testing it as a combination with successful weight loss drugs made by both Eli Lilly and Novo Nordisk. The results of its phase 1b clinical trial are promising.

In a 10-day study of 21 seniors confined to bed rest — as in, patients were not allowed to leave their beds for more than a week — only one of the 11 patients in the group of treatment experienced a decrease in muscle quality compared to eight out of 10 in the placebo group. Their muscles also maintained their size significantly better than the placebo patients. In particular, the measurement of thigh circumference was twice as large, on average.

In fact, some of the patients who took azelaprag saw some of their muscle size increase slightly. Preclinical data from animal models also suggest that the candidate has a strong weight-loss effect by triggering a series of favorable metabolic changes, but these findings will need to be replicated in humans before it’s worth getting excited about.

BioAge claims that azelaprag is capable of these impressive feats because it leads to physiological effects that overlap with the effects of exercise. If that’s true, barring any major safety signals and assuming the remaining clinical trials go as planned, it’s easy to see how an at-home drug could work here. It’s worth buying the stock based on that potential, as long as you keep your exposure small for now and as long as you’re comfortable investing in a very risky biotech stock ahead of earnings.

But don’t let this biotech’s long road to revenue be too daunting. On October 1, it completed its initial public offering (IPO) and a concurrent private placement of its shares, raising gross proceeds of over $238 million. Its operating expenses over the past 12 months were just $51.5 million, so it has at least a few years before it needs to raise more money, even when factoring in higher running costs of mid- to late-stage clinical trials. the near future.