Back to News
investment

2 Underrated Weight Loss Stocks to Buy Now

newsfeedback@fool.com (Prosper Junior Bakiny)
Loading...
4 min read
0 likes
⚡ Quantum Brief
Regeneron’s trevogrumab showed phase 2 success in reducing muscle loss by 50% in patients using GLP-1 drugs like Wegovy, positioning it as a complementary therapy rather than a direct competitor. Roche’s CT-388 demonstrated 22.5% placebo-adjusted weight loss in phase 2 trials, rivaling top obesity drugs, with phase 3 studies expected to confirm its potential as a next-gen treatment. Both companies offer diversified portfolios beyond weight loss, mitigating risks from clinical setbacks, with Regeneron’s Dupixent and Roche’s Ocrevus driving current growth. Regeneron’s olatorepatide, a GLP-1 candidate, enters phase 3 trials in 2026, expanding its obesity pipeline alongside trevogrumab, while Roche’s 66-molecule pipeline supports long-term stability. Investors seeking weight-loss exposure may prefer these underrated stocks over market leaders Eli Lilly and Novo Nordisk due to their broader revenue streams and lower volatility.
AI Audio Summary
0:00 / 0:00
Click to play
634ac7ee-9589-4c49-958b-238f62ca6c02.jpeg
Quantum News · Media Library

By Prosper Junior Bakiny – Mar 8, 2026 at 8:00AM ESTKey PointsRegeneron has a pair of weight-loss candidates close to entering late-stage studies. Roche's recent mid-stage readout positions it as a strong contender in the weight loss market.Both companies can withstand clinical setbacks in this area and still perform well. Investors who want to capitalize on the growing weight loss market might be tempted to turn to the current leaders in the field, Eli Lilly and Novo Nordisk. Both companies are worth serious consideration, in my view, but other drugmakers could also offer investors exposure to this area while having more diversified portfolios. Some investors might be more attracted to this value proposition. That said, here are two companies quietly making progress in the weight-loss market that may be worth investing in today: Regeneron (REGN 0.67%) and Roche (RHHBY +2.21%). Image source: Getty Images. 1. Regeneron Last year, Regeneron reported strong phase 2 results for one of its leading weight-loss candidates, trevogrumab. One thing to note about this product is that it is being developed to help minimize muscle loss in patients taking GLP-1 medicines. In the mid-stage trial, though about 33% of the weight loss in patients taking semaglutide (the generic name for Wegovy) was due to lean mass loss, trevogrumab was able to avert about half of that lean mass loss. The advantage of Regeneron's approach with trevogrumab is that this candidate will not have to compete directly with the current leaders. Instead, it could be prescribed alongside, say, Wegovy. ExpandNASDAQ: REGNRegeneron PharmaceuticalsToday's Change(-0.67%) $-5.09Current Price$759.84Key Data PointsMarket Cap$80BDay's Range$750.20 - $762.3852wk Range$476.49 - $821.11Volume21KAvg Vol824KGross Margin81.56%Dividend Yield0.47% That said, Regeneron is also developing a GLP-1 medicine, olatorepatide. Regeneron expects to start phase 3 studies for olatorepatide this year. Within the next couple of years, the biotech giant could make significant clinical progress with these programs. What about the rest of Regeneron's lineup? The company's most important growth driver right now is Dupixent, an eczema treatment. Regeneron also markets Eylea HD, a newer formulation of its wet age-related macular degeneration treatment. Although the old version lost patent exclusivity, Eylea HD is slowly gaining ground and could allow the company to post stronger sales growth down the line. And, in addition, Regeneron has a vast pipeline and should launch additional products over the next few years. The company would benefit if it were successful in the weight-loss market, but its portfolio is large enough to survive disappointments in that area. 2.

Roche In January, Roche reported strong phase 2 results for one of its leading anti-obesity candidates, CT-388. The medicine showed a placebo-adjusted weight loss of 22.5% over 48 weeks at the highest dose. With the usual caveat that comparing across clinical trials always carries serious limitations, this performance looks competitive compared to the best-selling weight-loss drugs. Roche still needs to confirm these results in a phase 3 study, but the company is now a notable player in the race for next-gen obesity medicines. ExpandOTC: RHHBYRoche Holding AGToday's Change(2.21%) $1.20Current Price$55.39Key Data PointsMarket Cap$305BDay's Range$54.32 - $55.3952wk Range$34.75 - $60.85Volume2.4MAvg Vol2.8MGross Margin73.19%Dividend Yield2.51% However, there is much more to Roche's operations than that. The Switzerland-based company has a diversified healthcare business that spans pharmaceuticals and diagnostic solutions. Within pharmaceuticals, the company has several notable growth drivers, including Ocrevus, a multiple sclerosis treatment, and Vabysmo, a therapy that competes with Eylea HD. Roche also has a deep pharmaceutical pipeline, boasting 66 new molecular entities. CT-388 would be a great addition here, but whether it pans out or not, Roche looks like an attractive stock to buy and hold onto for a while. Read NextMar 5, 2026 •By Adria Cimino2 Biotech Giants to Buy in 2026Feb 24, 2026 •By Prosper Junior Bakiny2 Reasons Regeneron Stock Could Crush the Market for the Next 10 YearsFeb 21, 2026 •By Adria Cimino1 No-Brainer Biotech Stock To Buy Today and Never SellDec 13, 2025 •By Prosper Junior Bakiny2 Reasons to Buy Regeneron Stock Like There's No TomorrowNov 30, 2025 •By Prosper Junior BakinyShould You Buy This Biotech Stock That Just Gained 5% in 1 Day?Nov 24, 2025 •By Scott Levine1 Reason Why Shares of Regeneron Pharmaceuticals Are Surging This MonthAbout the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.

Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedRegeneron PharmaceuticalsNASDAQ: REGN$759.86(-0.66%)-$5.07Roche Holding AGOTC: RHHBY$55.39(+2.21%)+$1.20Eli LillyNYSE: LLY$990.18(+0.70%)+$6.92Novo NordiskNYSE: NVO$38.58(-1.25%)-$0.49*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Read Original

Tags

drug-discovery

Source Information

Source: The Motley Fool

Discussion

0 professional contributions

Sign in to join this professional discussion.

Be the first to add a constructive contribution.