Key Points
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Amgen is developing a highly differentiated GLP-1 product.
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Regeneron has a pair of promising GLP-1 candidates in the pipeline.
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Both biotechs are performing well beyond their work in this therapeutic area.
- 10 stocks we like better than Amgen ›
Demand for GLP-1 drugs is exploding. While medicines in this category traditionally treated diabetes, they are now being approved to manage other conditions, including obesity and obstructive sleep apnea. Further, based on pipeline programs across the pharmaceutical industry, we can expect GLP-1 therapies to eventually earn approvals across many other areas. Several companies could capitalize on this. The current leaders in the field are Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO), but there are other drugmakers to look at, such as Amgen (NASDAQ: AMGN) and Regeneron (NASDAQ: REGN). Here is why investors interested in cashing in on the GLP-1 boom should consider these two stocks.
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1. Amgen
Amgen is performing well this year. The stock is up 27% to date. The company’s financial results have been pretty strong. In the second quarter, Amgen’s revenue increased by 10% year over year to $10.1 billion. Adjusted earnings per share (EPS) were $6.29, up 4% compared to the year-ago period.
Last year, Amgen lost patent exclusivity for denosumab, a medicine that treats several bone-related conditions, and is now facing biosimilar competition. This wasn’t a minor patent cliff for the biotech leader. Denosumab accounted for about 18% of Amgen’s revenue last year.
However, the company is overcoming that challenge thanks to several other growth drivers, including Tepezza, a medicine for thyroid eye disease, and Tezspire, a treatment for asthma. Things could get even better for Amgen if it earns approval for MariTide, an investigational GLP-1 medicine. MariTide is being tested in phase 3 studies in weight management, diabetes, and several other conditions.
Provided the drug passes these clinical trials with flying colors, Amgen could be looking at an important long-term growth driver. It’s also worth noting that MariTide could be administered monthly or even less frequently, a significant advantage compared to the daily or weekly anti-obesity treatments currently on the market. Patients are willing to pay a price for convenience. That price may be lower efficacy.
That’s why, despite being less effective than injectable weight loss options, oral medicines in the field are currently seeing significant success. We could see something similar with long-acting therapies like MariTide. Amgen also has a deep pipeline beyond this product and should make significant clinical progress over the next few years. Lastly, the company is a terrific dividend stock.
It currently offers a forward yield of 2.4% and has increased its payouts every year since first initiating them in 2011. All these factors make Amgen a great stock to buy and hold.
2. Regeneron
Regeneron’s shares moved south through the first half of 2026. But they have been rebounding over the past two months. Improving financial results have something to do with that. In the second quarter, the company’s revenue increased by 17% year over year to $4.3 billion. The drugmaker’s adjusted EPS came in at $14.29, up 11% from the prior-year quarter.
Regeneron has faced challenges in recent years due to biosimilar competition for Eylea, a drug used to treat several eye-related conditions. But the company launched a high-dose (HD) formulation of the medicine with a much friendlier administration schedule without sacrificing efficacy. Eylea HD is helping push the company’s sales in the right direction, as is Dupixent, a drug for eczema and COPD, and Regeneron’s most important growth driver. The biotech is performing pretty well, but its work in the weight-loss market could further improve the business.
Regeneron is developing olatorepatide, a dual GLP-1 and GIP agonist, which it licensed from a China-based company. Olatorepatide looks highly promising. In a phase 3 study conducted in China, the medicine led to a mean weight loss of up to 19% over 48 weeks.
While it’s always tough to compare across clinical trials (especially when they are conducted in different countries), it’s worth noting that Eli Lilly’s Zepbound, the leader in the field, posted a mean weight loss of 20.2% in a phase 3 study. Could olatorepatide be about as effective as the current market leader?
Perhaps, and that’s not even Regeneron’s only candidate. The company is developing a medicine that may help patients maintain muscle mass as they lose weight on GLP-1s, something many struggle to do. Regeneron could also be a winner from the GLP-1 boom, and considering the company’s entire business, the stock looks attractive right now.
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Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Amgen, Eli Lilly, Novo Nordisk, and Regeneron Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
