Eli Lilly strengthened its leading position in the GLP-1 weight loss drug market with two major developments: Novo Nordisk's CagriSema failed to outperform Lilly's Zepbound in clinical trials, and Lilly launched a new convenient monthly-dose pen format for Zepbound. With 60% U.S. market share and a projected $100 billion market over four years, Lilly is well-positioned for continued growth, though competition from Pfizer and Viking Therapeutics remains a potential threat.

Viking Therapeutics' weight-loss drug candidate VK2735 has posted strong mid-stage data and is in phase 3 clinical trials, positioning it as a potential disruptor in the rapidly growing obesity drug market. While the stock could deliver outstanding returns if it successfully navigates clinical and regulatory hurdles, investors should be aware of significant risks including potential clinical setbacks and increased market competition.

Viking Therapeutics (VKTX) shares surged 10.91% after Novo Nordisk's REDEFINE 4 trial failed to demonstrate non-inferiority for its obesity drug CagriSema compared to Eli Lilly's tirzepatide. The trial showed 20.2% weight loss with CagriSema versus 23.6% with tirzepatide. Viking's VK2735, a dual GLP-1/GIP agonist available in both injectable and oral forms, is positioned favorably as it enters Phase 3 trials in Q3 2026, with no competitors currently offering both formulations.

Viking Therapeutics is positioned to capture significant market share in the rapidly expanding weight loss drug market, currently valued at $3.6B with potential to reach $35B if its VK2735 candidate succeeds in phase 3 trials. The obesity drug market is projected to reach nearly $100B by decade's end, with room for multiple competitors beyond current leaders Eli Lilly and Novo Nordisk.

Viking Therapeutics is positioning itself as a serious contender in the rapidly growing weight loss drug market, expected to reach nearly $100 billion by decade's end. The company is advancing its dual GIP/GLP-1 receptor agonist candidate VK2735 through phase 3 trials in both injectable and oral formats, with key data releases and trial launches expected in 2026. While the company shows promise with an innovative pipeline, investors should weigh the clinical development risks against potential long-term growth opportunities.

The global health and wellness sector is projected to reach $6 trillion in annual consumer spending in 2026, driven by demand for functional products and stricter clean-label regulations. Five companies are capitalizing on this trend: Doseology Sciences launched caffeine-based energy pouches; Amneal Pharmaceuticals introduced a new brand identity and plans an Accessibility Index; Prestige Consumer Healthcare expanded its dry eye care portfolio; Viking Therapeutics advanced its obesity drug portfolio with Phase 3 trials; and Insulet expanded its automated insulin delivery system to the Middle East.

Viking Therapeutics is emerging as a potential competitor in the GLP-1 weight loss drug market dominated by Eli Lilly and Novo Nordisk. The company's VK2735 candidate is in phase 3 trials (injectable) and phase 2 trials (oral formulation), with strong clinical results so far. The stock has historically surged on positive news, and potential regulatory approval or acquisition could drive future gains, though biotech development risks remain.

For investors who missed Eli Lilly's impressive run, two smaller biotech companies offer potential alternatives: Viking Therapeutics is developing VK2735, a weight-loss drug similar to Eli Lilly's Zepbound with phase 3 results expected next year, while Abivax is testing obefazimod for ulcerative colitis with maintenance study results planned for Q2. Both stocks carry high risk but could deliver significant rewards if their clinical trials succeed.

Healthcare stocks face headwinds in 2026 despite being slightly cheaper than the broader market. Popular weight-loss drug makers like Eli Lilly command premium valuations with significant downside risk, while regulatory pressures from Medicare drug price negotiations and political pressure on medical costs could impact margins. Investors must understand how money flows through the healthcare system and which policies could affect profitability.

The article recommends three growth stocks for investors seeking alternatives to crowded mega-cap trades: SoundHound AI, a voice AI platform company with high volatility but long-term growth potential in the AI agent market; Viking Therapeutics, a late-entrant in weight-loss drugs with a potentially superior dual-mechanism drug candidate; and Vistra, a utility and energy wholesaler positioned to benefit from nuclear power demand and AI data center expansion in key regions.

The article recommends Pfizer and Viking Therapeutics as attractive stocks to buy under $40, citing their underperformance in 2025 as a buying opportunity. Pfizer is highlighted for its deep drug pipeline including promising cancer medicine PF-4404 and weight management asset MET-097i, plus a tariff exemption deal. Viking Therapeutics, a riskier clinical-stage biotech, is noted for its promising weight-loss candidate VK2735 in phase 3 trials with an oral version in development.

Eli Lilly's stock surged 39% in 2025 driven by its weight loss drugs Mounjaro and Zepbound in a booming obesity drug market projected to reach $100 billion by decade's end. The article recommends Viking Therapeutics as an alternative biotech play, as its dual GIP/GLP-1 receptor agonist candidate VK2735 shows promising late-stage trial results and could compete in the same high-growth market, though it carries development risk as a pre-commercial company.