Eli Lilly’s oral GLP-1 breakthrough has sparked even greater interest from the market in the innovative obesity drug sector. Companies like DarioHealth, which provides digital support tools to improve medication adherence, and Viking Therapeutics, with its own GLP-1 pipeline may present unique opportunities to benefit from the surge in demand and broader market adoption.
The weight loss and diabetes treatment landscape experienced a seismic shift recently when Eli Lilly revealed breakthrough data for its oral GLP-1 medication. Research suggests that annual global sales of GLP-1 agonists could grow at a staggering 33% annualized rate, reaching $471 billion by 2032. In a major recent advancement, Eli Lilly announced that its once-daily pill, orforglipron, demonstrated efficacy comparable to injectable GLP-1 drugs in its Phase 3 clinical trials, potentially eliminating the need for injections that have been a barrier to wider adoption. The stock market reacted enthusiastically to Eli Lilly’s announcement, with LLY shares surging as investors recognized the enormous market expansion potential.
The competitive landscape is intensifying, with new estimates forecasting that seven new GLP-1 agonists could launch in the U.S. by 2030. However, not all competitors are finding success. For example, Pfizer recently abandoned its experimental oral GLP-1 agonist danuglipron after a trial patient experienced liver injury. As GLP-1 medications transition from injections to more convenient oral formulations, we’re likely to witness the emergence of a comprehensive ecosystem supporting these treatments. With potential adoption rates expected to reach unprecedented levels, an entire infrastructure of support services, monitoring systems, and complementary technologies will be required, creating unique opportunities through both key drug developers themselves and the companies providing the surrounding ecosystems.
Here are four companies to watch as the GLP-1 revolution unfolds: Viking Therapeutics Inc. (VKTX), DarioHealth Corp. (DRIO), Structure Therapeutics Inc. (GPCR), and of course Eli Lilly and Co. (LLY).
1. Viking Therapeutics Inc. (VKTX)
Despite experiencing a 28.7% decline year-to-date (as of March 6), Viking Therapeutics remains a compelling player in the GLP-1 space. This San Diego-based clinical-stage biopharmaceutical company specializes in developing therapies for metabolic and endocrine disorders, with significant focus on its VK2735 experimental obesity-fighting drug.
Viking plans to roll out the final-phase injectable VK2735 for obesity and diabetes patients in the second quarter of 2025, with an oral version slated for a three-month trial later that year. While the company has faced recent stock pressure following tepid earnings, analysts remain optimistic about its pipeline. Leerink Partners analyst Thomas Smith noted, “We continue to see fundamental and strategic value for their potentially best-in-class portfolio of obesity and metabolic disease programs.”
2. DarioHealth Corp. (DRIO)
DarioHealth* has positioned itself at the intersection of digital health and GLP-1 medication support, creating a comprehensive platform that addresses the critical behavioral components required for sustainable weight loss. The company recently expanded its GLP-1 solution with prescribing capabilities through a strategic collaboration with MediOrbis, targeting both employer and direct-to-consumer markets.
This expansion comes at a crucial time, as research indicates that 50-75% of patients discontinue GLP-1 medications within one year without proper behavioral support. DarioHealth’s platform offers personalized digital coaching and AI-driven monitoring designed to maximize GLP-1 medication effectiveness through sustainable lifestyle modifications.
The company’s multi-condition approach gives it a competitive advantage in the rapidly evolving GLP-1 market, enabling employers and health plans to implement comprehensive weight management programs while managing medication costs. With Q4 2024 B2B2C recurring revenue surging 398% year-over-year and multiple Blue Cross Blue Shield agreements secured, DarioHealth appears well-positioned to capitalize on the expanded access that oral GLP-1 medications will create. The company’s recent collaborations with healthcare institutions and benefits administrators further strengthen its position in the GLP-1 ecosystem.
Read: DarioHealth Expands GLP-1 Offering, Eyeing the $100 Billion Obesity Market
3. Structure Therapeutics Inc. (GPCR)
Despite a challenging start to 2025 with shares sliding 13.2% year-to-date and 29.5% over the past three months, Structure Therapeutics shows promising upside potential. In its Q4 earnings release, the San Francisco-based company reported significant progress with its weight loss drug pipeline while announcing a substantial $547 million financing round to accelerate its clinical-stage biopharmaceutical research.
With $883.5 million in cash on hand, Structure Therapeutics is well-capitalized to advance its development programs. The company has attracted positive analyst attention, with William Blair initiating coverage with an “outperform” rating and Leerink’s David Risinger maintaining a “buy” rating with a $60 target price, representing significant upside from its recent closing price of $23.53 (as of March 6).
4. Eli Lilly and Co. (LLY)
As the pioneer behind the oral GLP-1 breakthrough, Eli Lilly stands to benefit tremendously from the expanded market potential. The Indianapolis-based pharmaceutical giant recently announced a massive $27 billion program to develop its drugs in the U.S. as part of a broader $50 billion commitment to expand its manufacturing capabilities.
Eli Lilly’s financial performance has been exceptional, with non-GAAP earnings per share soaring 114% to $5.32 in the most recent quarter, handily beating analyst expectations of $5.02. Revenue jumped 45% to $13.5 billion, driven primarily by diabetes drug Mounjaro and weight loss drug Zepbound. The company also offers investors a forward dividend yield of 0.66%, having doubled its dividend payments since 2023.
Wall Street remains bullish on Eli Lilly’s prospects, with Wells Fargo analyst Mohit Bansal maintaining a “buy” rating and setting a price target of $1,100, representing further upside from its recent closing price of $912.76 per share.
The Bottom Line
As GLP-1 medications transition from injectable to oral formulations, we’ll likely witness dramatic market expansion and the emergence of a comprehensive supporting ecosystem. Companies positioned along this value chain—from drug manufacturers like Eli Lilly and Viking Therapeutics to digital health platforms like DarioHealth—stand to benefit substantially from this transformative shift in obesity and diabetes treatment. Investors should closely monitor developments in this rapidly evolving sector, as it represents one of the most significant healthcare innovations of our time with potential market valuation implications reaching hundreds of billions of dollars.
Read more from the Finance Herald
- NeuroSense Therapeutics Releases Letter to Shareholders Outlining Clinical Progress, Regulatory Strategy, and Partnership Update
- Reawakening Gold: Navigating the Coming Financial Storm
- The Tension Between Environmental Activism and Human Development: Rethinking Our Approach to Energy Policy
- Mayor’s Frenzied Fentanyl Remarks Ignite Outrage and Recall Efforts in Lancaster
- Strong Demand Resilient in Latest Treasury Auction Despite Foreign Participation Decline
Subscribe for More Articles Like This
*Disclaimer: This article was written and published by The Finance Herald, which is part of Wall Street Wire™ network. Nothing in this article constitutes financial or investment advice, nor does it represent an offer to buy or sell securities. The operators of Wall Street Wire network are not registered brokers, dealers, or investment advisers. This article contains and is a form of paid promotional content related to DarioHealth and was produced as part of their paid subscription to Wall Street Wire. This article has not been reviewed or approved by DarioHealth prior to publication. The information in this article is based on publicly available news reports and filings which have not been independently verified by us. Please review the full disclaimers and compensation disclosures here: redditwire.com/terms.