A leading exchange-traded fund provider is betting on the long-term popularity of GLP-1 weight loss drugs.
Roundhill Investments’ GLP-1 & Weight Loss ETF (OZEM), which began trading last week, is a top pair Eli Lilly And Novo Nordisk with players developing new treatments for weight loss and diabetes. CEO Dave Mazza said his company is capitalizing on the industry’s explosive growth potential.
“Active management’s ability to overweight companies that are actually in the market and producing drugs and then identify the companies that are in certain stages is powerful,” Mazza told ETF Edge last Monday CNBC.
Eli Lilly and Novo Nordisk each hold about a 20% weighting in the ETF as of Friday, according to Roundhill’s website. The next three largest positions are Zealand Pharma, Amgen And Chugai Pharmaceuticaleach of which has a weighting of less than 5%.
Over the past year, Eli Lilly is up 90% as of Friday’s close, while Novo Nordisk is up 68%. Mazza dismissed concerns that investors had missed the rally, noting that the weight-loss pharmaceutical industry is still in its “early days.”
“There is a lot of room for growth in the market as other companies come in, whether with stronger drugs or with things that you don’t actually need to get an injection.”
He also expects GLP-1 drug makers to follow a similar path to AI-related stocks.
“It’s a bit like thinking about it Nvidia with AI. “They just have a head start,” Mazza said. “[Eli Lilly and Novo Nordisk] “We focused on diabetes and weight loss medications a few years ago and were able to come to market and achieve remarkable results.”
After debuting last Tuesday, shares of Roundhill’s GLP-1 & Weight Loss ETF ended the week down nearly 2%.
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2024-05-27 16:01:01
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