**Hot Stocks Discovered: UK Investors Back US Weight-Loss Drug Star Eli Lilly and Defense Giant BAE**
Investing platform eToro has unveiled the in-demand and overlooked stocks among its UK investors, with Eli Lilly, the US weight-loss drug leader, and BAE Systems, the British defense giant, emerging as the top choices.
According to data from eToro, UK retail investors are showing strong support for Eli Lilly, anticipating approval for a new obesity treatment. In the three months leading up to the end of September, Eli Lilly experienced a remarkable 32% increase in shareholders on the platform, making it the stock with the highest proportional change during that period. On the other hand, BAE Systems saw a 30% rise over the same period, which came before the tragic news from Israel over the weekend.
Meanwhile, First Republic Bank and Activision Blizzard experienced a decrease in holdings of 18% and 13% respectively, as investors seemed to lose interest in these companies.
Eli Lilly is currently awaiting approval for a weight-loss formulation of its Mounjaro diabetes drug from the US Food & Drug Administration. Industry analysts predict that this approval could lead to substantial sales in the coming years, providing a much-needed boost to the pharmaceutical industry, which is facing the expiration of drug patents resulting in significant revenue losses. Obesity and diabetes treatments are expected to be key drivers of growth in the sector. Barclays analysts even forecast that the global market for obesity drugs could reach a value of $100 billion by 2030, with trials of GLP-1 treatments showing promising results, including weight reduction of up to 20%.
Eli Lilly’s Mounjaro has competitors in the market, such as Novo Nordisk, which is already achieving impressive sales with its drugs Ozempic and Wegovy. Other major pharmaceutical companies like Pfizer and Amgen are also developing their own treatments.
eToro global market strategist Ben Laidler stated, “Big pharma is increasingly recognizing the global obesity crisis and in recent months, some frontrunners have emerged. Retail investors clearly see the enormous growth potential in this area, and it’s not surprising that a drug manufacturer specializing in this field has made it onto our top risers list.”
Eli Lilly, headquartered in Indianapolis, has seen its shares surge by almost 75% over the past year, indicating investors’ excitement about the prospects of Mounjaro. The stock has also gained attention from retail investors on the Hagreaves Lansdown platform, becoming its fourth-most owned overseas company.
AXA Investment Managers’ portfolio manager, Linden Thomson, stated, “Lilly has been rewarded by investors for its recent clinical data in the treatment of obesity and Alzheimer’s disease. We expect both drugs to be approved in the US in the coming months. The commercial opportunity to treat obesity is evident from the success Novo Nordisk is experiencing with Wegovy.” Thomson also expressed optimism about the potential of Eli Lilly’s new Alzheimer’s treatment and similar drugs in the sector.
Hargreaves Lansdown’s lead equity analyst, Sophie Lund-Yates, added, “Pharmaceutical giants are facing the loss of hundreds of millions of dollars as patents expire in the next few years, which means prices on once-blockbuster drugs can come under immense pressure. Obesity and diabetes treatments are seen as the next revenue wave for pharma, and investors don’t want to miss out.”
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