Get Ready for LLY & BIOA's Next-Gen Weight Loss Drugs
The race to develop the next-generation weight-loss drug is on, and the first company to crack the code stands to make a fortune. Several companies are already deep into development, so let’s take a closer look at some weight-loss stocks worth watching.
1. $Eli Lilly(LLY)$
Eli Lilly has made a name for itself in the weight-loss market with its blockbuster drug, Zepbound, which brought in over $1.2 billion in sales in just Q2. But Lilly isn’t stopping there—it’s investing heavily in heart and metabolic research, with one next-generation weight-loss drug showing particular promise.
Lilly is currently in a Phase 2 trial to see if the antibody bimagrumab can help with weight loss, either on its own or in combination with Novo Nordisk’s semaglutide (better known by brand names like Ozempic and Wegovy). This trial is exploring whether bimagrumab can preserve, or even increase, muscle mass while patients lose weight on semaglutide.
In an earlier Phase 2 study by third-party researchers, the results were impressive: after 48 weeks, patients saw an average 20.5% reduction in total body fat, gained 3.6% in lean muscle, lost inches off their waist, and lowered their blood sugar levels. Side effects were on par with those in the placebo group.
Lilly’s current study is expected to conclude by mid-2025. If the results mirror those from previous trials, Lilly will likely push bimagrumab to Phase 3 and commercialization. A drug that trims belly fat while adding a bit of muscle would be a game-changer, especially since there’s nothing quite like it on the market today.
2. $BioAge Labs Inc.(BIOA)$
BioAge Labs has yet to launch its first drug, but its main candidate could bring a compelling twist to weight loss. The drug, called azelaprag, has the potential to help patients shed pounds while preserving or even enhancing muscle mass.
Azelaprag is currently in Phase 2 trials, testing its use alongside heavyweight drugs from Eli Lilly and $Novo-Nordisk A/S(NVO)$ . Early Phase 1 results are promising: in a 10-day study on 21 bedridden elderly patients, only one in the treatment group experienced muscle loss, compared to eight out of ten in the placebo group.
Preclinical data from animal models also suggest that azelaprag sparks a cascade of beneficial metabolic changes that support significant weight loss, although human trials will ultimately prove whether these results hold up.
BioAge claims azelaprag’s effects mimic those of exercise—a bold assertion that’s captured a lot of interest. Given the drug’s potential, it could be worth a small, speculative position if you’re comfortable with a high-risk, pre-revenue biotech stock.
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