"The VanEck Pharmaceutical ETF (NYSEARCA:PPH) has surged 26% over the past year, driven almost entirely by the weight-loss drug revolution. The fund's concentrated bet on GLP-1 manufacturers makes this a call option on the market's continued growth. Eli Lilly () and Novo Nordisk () combined represented nearly one-third of the ETF. If you believe the analyst estimates that GLP-1 market will exceed $150 billion by the early 2030s, this is where you want to be invested."
"The largest factor affecting PPH's trajectory is the sustainability of GLP-1 demand and pricing power. Novo Nordisk's recent approval of oral Wegovy has intensified competition with Eli Lilly's Mounjaro and Zepbound, creating a race for market share in both injectable and pill formats. Both companies have experienced explosive earnings growth as GLP-1 adoption accelerated, with Lilly's results reflecting strong Mounjaro uptake and Novo benefiting from Wegovy's expansion. However, the pace of growth is moderating as the market matures, shifting from breakthrough adoption to steady expansion."
VanEck's PPH ETF gained 26% over the past year primarily from exposure to GLP-1 weight-loss drugs, with Eli Lilly and Novo Nordisk comprising nearly one-third of holdings. Analyst projections anticipate the GLP-1 market exceeding $150 billion by the early 2030s, underpinning investor interest. Novo Nordisk's oral Wegovy approval intensified competition with Eli Lilly's Mounjaro and Zepbound, producing rapid earnings growth but signaling a maturing market and moderating growth. Investors should monitor prescription volumes, insurance coverage expansion, and manufacturing capacity for signs of demand normalization or pricing pressure that would disproportionately affect the concentrated PPH portfolio.
Read at 24/7 Wall St.
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