Join our community of smart investors

This weight-loss superstar more than justifies its hefty price

Some fear weight-loss stocks are approaching bubble territory, but this incumbent player continues to prove its worth
This weight-loss superstar more than justifies its hefty pricePublished on October 3, 2024

In the unlikely event that you are bitten by a gila monster, North America’s largest lizard, it’s wise to seek medical attention. Their venom isn’t usually fatal to people, but it can cause severe pain. In the mid-1990s, scientists studying the gila’s venom discovered it contained a hormone called exendin-4, which regulates the lizard’s blood sugar after eating. Humans produce a similar hormone, GLP-1, but it degrades much faster in our bodies.

Tip style
Growth
Risk rating
High
Timescale
Medium Term
Bull points
  • Leading developer of oral GLP-1s
  • Diversified portfolio
  • Huge momentum behind the shares
Bear points
  • Rival drugs to launch before 2030
  • Valuation leaves little room for error

Gila monsters are slow-moving, meaning prey can be hard to come by, so it’s helpful to have long-lasting glucose control. Diabetes researchers realised a synthetic version of exendin-4 could potentially help patients. The first such treatment, known as a GLP-1 receptor agonist, was released in 2005.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Already a subscriber? Sign in