We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GLP-1 Drug Giants Race to Go Global With Their Obesity Pills: ETFs to Gain
Read MoreHide Full Article
Key Takeaways
Eli Lilly and Novo Nordisk are expanding obesity pills globally amid soaring GLP-1 demand.
Morgan Stanley sees the obesity and diabetes treatment market reaching $190B by 2035.
OZEM offers diversified exposure to the expanding weight-loss drug market.
The weight loss drug market has evolved into one of the most explosive, flourishing segments of the global healthcare industry, driven by an unprecedented surge in demand for glucagon-like peptide-1 (GLP-1) receptor agonists. At the center of this surge are the world's premier anti-obesity duopolists, Novo Nordisk (NVO - Free Report) and Eli Lilly (LLY - Free Report) , which control over 90% of the entire global GLP-1 market.
While these two pharmaceutical behemoths have already experienced staggering success within the domestic U.S. market, they are now locked in a fierce, high-stakes race to aggressively expand their global presence. A clear testament to this global ambition unfolded last week at the European Congress on Obesity (ECO 2026) in Istanbul, Turkey, wherein both companies showcased groundbreaking clinical data regarding their next-generation weight-loss pills.
As other pharma giants like Merck (MRK - Free Report) , AstraZeneca (AZN - Free Report) and Roche are developing their own GLP-1 pills, the race to launch weight-loss pills globally is heating up rapidly. This massive expansion is poised to boost thematic exchange-traded funds (ETFs) focused on obesity and weight loss, which offer diversified exposure to the entire multi-billion-dollar supply chain.
But before delving into the specifics of these ETFs, we must first understand the commercial rationales driving these pharma giants to expand globally, alongside the long-term outlook for the market.
Weight Loss Scaling Beyond the U.S. Border
The United States currently drives the vast majority of the GLP-1 weight loss market, accounting for over 75% of global revenues. The overall international GLP-1 market is also growing at a faster pace lately, registering growth of 77% over the past year, as of May 2026, according to Iqvia data (as cited in Wall Street Journal).
Amid strong international demand and the pressing need to diversify revenue streams, Novo Nordisk and Eli Lilly, which already command the majority of the U.S. market share, have been aggressively launching their weight-loss drugs across Europe, Asia and Latin America.
The underlying rationale behind this expansion is straightforward: enhancing manufacturing capacity and launching easier-to-distribute oral pills should help these companies alleviate localized supply shortages that have historically limited volume growth. It would also give them valuable first-mover advantages ahead of competing obesity pill launches in global markets.
Novo Nordisk sees a "major opportunity" outside the United States, with Executive Vice President Emil Kongshøj Larsen telling CNBC that the company is preparing aggressively to launch its Wegovy pill outside the United States, later this year. To this end, many experts view the UK, Germany, and Denmark as likely markets where NVO could next launch its Wegovy pill.
Meanwhile, in April, Eli Lilly CEO David Ricks told reporters that the company had submitted its weight-loss pill, orforglipron, which is expected to be marketed under the brand name Foundayo, for approval in more than 40 countries, with approvals in major markets such as the Gulf States anticipated later this year (as cited in Reuters).
Global Outlook for Obesity Pills
The outlook for the global weight loss market remains robust. While Novo Nordisk and Eli Lilly maintain deeply entrenched positions in the foundational U.S. market, the transition toward a truly global distribution footprint is expected to yield unprecedented financial returns.
According to a report published by Morgan Stanley Research, in April 2026, the global market for type 2 diabetes and obesity treatments is expected to reach $190 billion by 2035, representing an increase of $40 billion from previous estimates. By comparison, the revised peak forecast is more than double the $79 billion in total sales recorded in 2025.
Against the backdrop of this strong outlook, as healthcare systems increasingly recognize obesity as a serious and treatable chronic condition and reimbursement frameworks continue to improve globally, NVO and LLY are well-positioned to capture a significant share of the global obesity treatment market.
ETFs to Gain
Considering the discussion above, rather than building concentrated positions in NVO, LLY, or both, investors may benefit from choosing a thematic ETF that offers immediate and diversified exposure across the broader weight-loss ecosystem. For those seeking comprehensive exposure to this transformative medical trend, the following specialized exchange-traded funds present compelling investment opportunities:
This is an actively managed fund, with AUM worth $50.5 million, providing exposure to 45 companies advancing prevention and treatment across chronic conditions, including heart disease, diabetes and obesity. Of these, LLY holds the first position, with 10.77% weightage in the fund, while NVO holds the third position, with 5.5% weightage. Roche, Merck and AstraZeneca hold the fourth, fifth and sixth positions in this fund.
HRTS has rallied 18.7% over the past year. The fund charges 75 basis points (bps) as fees.
This is an actively managed fund, with assets under management (AUM) worth $47.6 million, providing exposure to 26 companies involved in the manufacturing of weight loss drugs, including GLP - 1 agonists. Of these, LLY holds the first position, with 17.11% weightage in the fund, while NVO holds the second position, with 13.43% weightage.
OZEM has surged 23.1% over the past year. The fund charges 59 bps as fees.
Amplify Weight Loss Drug & Treatment ETF (THNR - Free Report)
This fund, with assets of $4.08 million, provides exposure to 20 global companies expected to benefit economically from the development of weight-loss drugs. Of these, NVO holds the first position, with 14.77% weightage in the fund, while LLY holds the second position, with 12.82% weightage. Roche, MRK and AZN hold the seventh, ninth and tenth positions in this fund, respectively.
THNR has gained 9.3% over the past year. The fund charges 59 bps as fees.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
GLP-1 Drug Giants Race to Go Global With Their Obesity Pills: ETFs to Gain
Key Takeaways
The weight loss drug market has evolved into one of the most explosive, flourishing segments of the global healthcare industry, driven by an unprecedented surge in demand for glucagon-like peptide-1 (GLP-1) receptor agonists. At the center of this surge are the world's premier anti-obesity duopolists, Novo Nordisk (NVO - Free Report) and Eli Lilly (LLY - Free Report) , which control over 90% of the entire global GLP-1 market.
While these two pharmaceutical behemoths have already experienced staggering success within the domestic U.S. market, they are now locked in a fierce, high-stakes race to aggressively expand their global presence. A clear testament to this global ambition unfolded last week at the European Congress on Obesity (ECO 2026) in Istanbul, Turkey, wherein both companies showcased groundbreaking clinical data regarding their next-generation weight-loss pills.
As other pharma giants like Merck (MRK - Free Report) , AstraZeneca (AZN - Free Report) and Roche are developing their own GLP-1 pills, the race to launch weight-loss pills globally is heating up rapidly. This massive expansion is poised to boost thematic exchange-traded funds (ETFs) focused on obesity and weight loss, which offer diversified exposure to the entire multi-billion-dollar supply chain.
But before delving into the specifics of these ETFs, we must first understand the commercial rationales driving these pharma giants to expand globally, alongside the long-term outlook for the market.
Weight Loss Scaling Beyond the U.S. Border
The United States currently drives the vast majority of the GLP-1 weight loss market, accounting for over 75% of global revenues. The overall international GLP-1 market is also growing at a faster pace lately, registering growth of 77% over the past year, as of May 2026, according to Iqvia data (as cited in Wall Street Journal).
Amid strong international demand and the pressing need to diversify revenue streams, Novo Nordisk and Eli Lilly, which already command the majority of the U.S. market share, have been aggressively launching their weight-loss drugs across Europe, Asia and Latin America.
The underlying rationale behind this expansion is straightforward: enhancing manufacturing capacity and launching easier-to-distribute oral pills should help these companies alleviate localized supply shortages that have historically limited volume growth. It would also give them valuable first-mover advantages ahead of competing obesity pill launches in global markets.
Novo Nordisk sees a "major opportunity" outside the United States, with Executive Vice President Emil Kongshøj Larsen telling CNBC that the company is preparing aggressively to launch its Wegovy pill outside the United States, later this year. To this end, many experts view the UK, Germany, and Denmark as likely markets where NVO could next launch its Wegovy pill.
Meanwhile, in April, Eli Lilly CEO David Ricks told reporters that the company had submitted its weight-loss pill, orforglipron, which is expected to be marketed under the brand name Foundayo, for approval in more than 40 countries, with approvals in major markets such as the Gulf States anticipated later this year (as cited in Reuters).
Global Outlook for Obesity Pills
The outlook for the global weight loss market remains robust. While Novo Nordisk and Eli Lilly maintain deeply entrenched positions in the foundational U.S. market, the transition toward a truly global distribution footprint is expected to yield unprecedented financial returns.
According to a report published by Morgan Stanley Research, in April 2026, the global market for type 2 diabetes and obesity treatments is expected to reach $190 billion by 2035, representing an increase of $40 billion from previous estimates. By comparison, the revised peak forecast is more than double the $79 billion in total sales recorded in 2025.
Against the backdrop of this strong outlook, as healthcare systems increasingly recognize obesity as a serious and treatable chronic condition and reimbursement frameworks continue to improve globally, NVO and LLY are well-positioned to capture a significant share of the global obesity treatment market.
ETFs to Gain
Considering the discussion above, rather than building concentrated positions in NVO, LLY, or both, investors may benefit from choosing a thematic ETF that offers immediate and diversified exposure across the broader weight-loss ecosystem. For those seeking comprehensive exposure to this transformative medical trend, the following specialized exchange-traded funds present compelling investment opportunities:
Tema Heart & Health ETF (HRTS - Free Report)
This is an actively managed fund, with AUM worth $50.5 million, providing exposure to 45 companies advancing prevention and treatment across chronic conditions, including heart disease, diabetes and obesity. Of these, LLY holds the first position, with 10.77% weightage in the fund, while NVO holds the third position, with 5.5% weightage. Roche, Merck and AstraZeneca hold the fourth, fifth and sixth positions in this fund.
HRTS has rallied 18.7% over the past year. The fund charges 75 basis points (bps) as fees.
Roundhill GLP-1 & Weight Loss ETF (OZEM - Free Report)
This is an actively managed fund, with assets under management (AUM) worth $47.6 million, providing exposure to 26 companies involved in the manufacturing of weight loss drugs, including GLP - 1 agonists. Of these, LLY holds the first position, with 17.11% weightage in the fund, while NVO holds the second position, with 13.43% weightage.
OZEM has surged 23.1% over the past year. The fund charges 59 bps as fees.
Amplify Weight Loss Drug & Treatment ETF (THNR - Free Report)
This fund, with assets of $4.08 million, provides exposure to 20 global companies expected to benefit economically from the development of weight-loss drugs. Of these, NVO holds the first position, with 14.77% weightage in the fund, while LLY holds the second position, with 12.82% weightage. Roche, MRK and AZN hold the seventh, ninth and tenth positions in this fund, respectively.
THNR has gained 9.3% over the past year. The fund charges 59 bps as fees.