There Is Only 1 GLP-1 Stock to Buy In 2025

Weighing the Options

The introduction of Novo Nordisk’s (NYSE:NVO) Ozempic revolutionized the fight against obesity, shifting the narrative from lifestyle interventions to pharmacological solutions.

Glucagon-like peptide-1 (GLP-1) receptor agonists, like Ozempic, mimic a gut hormone that regulates appetite and glucose metabolism, promoting significant weight loss and diabetes management. By slowing gastric emptying and enhancing satiety, these drugs offer a powerful tool for tackling obesity, a global health crisis affecting over 650 million adults. 

Since Ozempic’s approval in 2017, the GLP-1 market has exploded, with global sales surpassing $40 billion in 2024, driven by soaring demand for weight-loss treatments. The market is projected to reach $100 billion by 2030, fueled by rising obesity rates and expanding indications. 

Yet, with multiple companies vying for dominance, investors face a crowded field. Among the options, only one GLP-1 stock stands out as the best investment in 2025.

Novo Nordisk (NVO)

Novo Nordisk has long held the crown in the GLP-1 market, leveraging its first-mover advantage with Ozempic and Wegovy. Ozempic, approved for type 2 diabetes, and Wegovy, for obesity, both powered by semaglutide, generated about $7.9 billion in just-reported second-quarter sales. 

Novo’s once-leading U.S. market share in GLP-1s on the strength of its strong brand and marketing prowess, with campaigns like ““Oh, Oh, Oh, Ozempic!” resonating widely, has fallen dramatically as competition became intensified. The company’s $24 billion investment in U.S. manufacturing and partnerships with telehealth platforms were not enough to withstand the onslaught.  

It issued a profit warning last week and its Q2 earnings report issued today showed the damage: combined Ozempic and Wegovy sales rose 16% for the period, a significant slowdown as NVO’s total sales missed estimates. Supply constraints and the use of compounded formulations of its top treatments ate away at growth, raising concerns about Novo’s ability to regain momentum.

Eli Lilly (LLY)

Eli Lilly (NYSE:LLY) has emerged as the market leader with its dual-action drugs Mounjaro and Zepbound, both based on tirzepatide, which targets both GLP-1 and GIP receptors. This dual mechanism enhances weight loss, with clinical trials showing Zepbound achieving over 20% body weight reduction compared to Wegovy’s less than 14%. 

In Q1 2025, Zepbound generated $2.3 billion and Mounjaro $3.8 billion, with Lilly capturing 53% of the U.S. GLP-1 market, overtaking Novo. Analysts say it now has 60% of the new prescription market, though its higher pricing faces scrutiny. 

Despite a recent earnings miss due to manufacturing costs, Wall Street expects Lilly’s Q2 earnings tomorrow to show robust growth. The superior efficacy of its drugs positions it to further erode Novo’s market share, making it a compelling investment in the GLP-1 space.

Hims & Hers Health (HIMS)

Telehealth platform Hims & Hers Health (NYSE:HIMS) entered the GLP-1 market by offering compounded versions of semaglutide and tirzepatide, capitalizing on shortages of branded drugs. These cheaper alternatives, priced as low as $199 per month, drove a 20% stock surge in early 2025 after partnerships with Novo and Lilly. 

However, the FDA’s February 2025 ruling ending the shortage declaration halted most compounding, leading Novo to terminate its Hims partnership in June. Hims’ insistence on selling “personalized” compounds by exploiting an FDA loophole has sparked legal and reputational risks, with Novo and Lilly pursuing litigation. 

Second-quarter earnings showed $190 million in GLP-1 revenue, down from $230 million in Q1, and Hims’ stock tumbled after falling well short of analyst sales and profit forecasts. With regulatory crackdowns looming, HIMS’ GLP-1 business faces an uncertain future, limiting its role in the market.

The Verdict

Eli Lilly is the GLP-1 stock to buy in 2025. Soaring sales of Mounjaro and Zepbound, which together generated $6.1 billion in Q1 and have assumed market share leadership from Novo Nordisk, ensure continued growth based on its superior efficacy and strategic expansions.

Meanwhile, Novo Nordisk is struggling to gain traction again, even after deals with the likes of CVS Health (NYSE:CVS) to be the sole weight-loss drug on the formulary. Hims & Hers’ reliance on compounded GLP-1s is on shaky ground due to regulatory and legal challenges, forcing it to pivot to other opportunities. While Hims may find long-term success elsewhere, it’s an also-ran in the GLP-1 market. 

Lilly’s momentum and innovation make it the clear winner for investors seeking exposure to this booming sector.