The legal clash between Novo Nordisk and Eli Lilly over GLP-1 drug advertising puts a spotlight on how powerful marketing claims can be in shaping demand for obesity and diabetes treatments. When a core message about efficacy is challenged, it can influence market share expectations, brand strength, and how investors view related stocks. This article looks at 3 stocks that appear positively exposed to this news, using a focused screener of companies linked to obesity and diabetes treatments to help you think through where the legal and marketing pressure around GLP-1 drugs might create opportunity or increase risk.

Altimmune (ALT)

Overview: Altimmune is a late stage biopharmaceutical company developing pemvidutide, a dual GLP-1 and glucagon agonist aimed at serious metabolic and liver diseases such as MASH, alcohol use disorder and alcohol associated liver disease.

Market Cap: US$0.6b

Altimmune gives you exposure to the GLP-1 obesity and liver disease theme without being tied to the Novo Nordisk and Eli Lilly advertising battle, as pemvidutide targets both weight loss and cardiometabolic health, including blood lipids and liver fat. Early data have attracted interest around its potential differentiation, while recent trial progress and index inclusions point to growing institutional attention. On the risk side, Altimmune is still unprofitable with very low current revenue, depends on further clinical success and has relied on equity raises that dilute shareholders. For investors willing to accept those trade offs, the combination of a focused pipeline, funding in place for late stage trials and analyst interest could make Altimmune a GLP-1 story to watch more closely.

Altimmune’s GLP-1 story is accelerating, yet many investors may still be missing how its dual focus on obesity and liver disease fits into the broader GLP-1 race, especially when you weigh the 1 key reward and 4 important warning signs (3 are major!)

Eli Lilly (LLY)

Overview: Eli Lilly is a global pharmaceutical company that develops and sells medicines across obesity, diabetes, oncology, immunology, neuroscience and other areas, with flagship GLP-1 products like Mounjaro, Zepbound and Trulicity at the center of its cardiometabolic portfolio.

Operations: Eli Lilly generates about US$72.2b from discovering, developing, manufacturing, marketing and selling pharmaceutical products, with revenue concentrated in the U.S. at US$47.1b, followed by Europe at US$12.8b and other international markets including China and Japan.

Market Cap: US$1.1t

Eli Lilly is at the center of the GLP-1 theme, with Mounjaro and Zepbound tied directly to the obesity and diabetes story that many investors are watching. The lawsuit from Novo Nordisk keeps its marketing in the public debate. Earnings momentum, margins and a broad late stage pipeline in obesity, oral GLP-1s and oncology provide company-level support for the GLP-1 franchise. At the same time, a rich P/E multiple, debt levels and legal or pricing risks keep expectations tight. For investors tracking how GLP-1s, Medicare access and capacity expansion intersect, the combination of growth, concentration in a few blockbuster drugs and legal scrutiny makes Eli Lilly a stock that some may choose to study in more depth.

Eli Lilly’s GLP-1 engine is running hard, but the real story sits where blockbuster concentration, rich P/E expectations and future pipelines intersect. This is exactly what the 3 key rewards and 2 important warning signs (1 is major!)

Rhythm Pharmaceuticals (RYTM)

Overview: Rhythm Pharmaceuticals is a commercial stage biopharmaceutical company focused on treating rare genetic obesity disorders, built around its MC4R pathway drug IMCIVREE for conditions such as POMC and LEPR deficiency obesity, Bardet Biedl and Alström syndromes, Prader Willi syndrome and hypothalamic obesity.

Operations: Rhythm generates about US$217.2m in revenue from developing and commercializing therapies for patients with rare diseases, with around US$146.1m from the United States and US$71.1m from international markets.

Market Cap: US$7.3b

Rhythm Pharmaceuticals sits in a notable position in the obesity discussion because it addresses rare genetic obesity where GLP 1 drugs are not a universal solution. Recent data and approvals for IMCIVREE in hypothalamic obesity and other indications support that specialized positioning. Investors are paying a high P/S multiple despite continued losses, as the company reported a net loss of US$55.64m on quarterly revenue of US$60.11m. Heavy dependence on a single drug and future reimbursement decisions are key risks to watch. At the same time, expansion into new age groups and indications, strong intellectual property protection and growing clinical evidence in areas such as Prader Willi syndrome present Rhythm as a differentiated way to gain exposure to the obesity theme that some market participants may be overlooking.

Rhythm Pharmaceuticals is expanding into rare obesity niches that many GLP-1 investors ignore, yet its high P/S and single drug focus raise big questions. Get the full picture with the analyst forecasts for Rhythm Pharmaceuticals

The three stocks in this article are just a starting point, as the full Healthcare - Pharmaceuticals (Specifically Obesity and Diabetes Drug Makers) screener reveals 34 more companies with equally compelling obesity and diabetes drug narratives that connect directly to the GLP-1 and cardiometabolic themes discussed here. Use Simply Wall St to identify and analyze the specific catalysts, clinical footprints and business models that matter most to you, so you can focus on the highest conviction ideas in this space.

Take Control of Your Investment Journey

If Altimmune or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond GLP-1?

Some stocks can move from quiet to breakout faster than most investors react. Review these ideas before momentum increases and the most attractive entry points are taken; consider your options early.

• Identify under-the-radar compounders early by reviewing a curated 20 high quality undiscovered gems before wider attention builds and entry prices start dropping.
• Strengthen your portfolio’s core with a focused list of solid balance sheet and fundamentals (48 results) that highlights companies built to handle shocks while prices still reflect limited expectations.
• Evaluate income potential while it matters by scanning a hand picked 9 dividend fortresses that can help you target reliable cash flows before yields compress.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.