The race to treat obesity and metabolic disease is reshaping expectations across large pharmaceutical stocks, and Eli Lilly is front and center after its Q2 earnings and outlook upgrade around Zepbound, Mounjaro and new pill Foundayo. Stronger than expected demand and higher 2026 sales guidance have sharpened investor focus on which companies are most exposed to this GLP-1 driven story. This article looks at three large-cap Healthcare stocks from a metabolic and obesity treatment screener that appear closely tied to the same themes. You will see how the recent Eli Lilly news could affect them and where the key risks and opportunities sit.

Madrigal Pharmaceuticals (MDGL)

Overview: Madrigal Pharmaceuticals focuses on treatments for metabolic liver disease and MASH, led by its approved drug Rezdiffra, a liver targeted thyroid hormone receptor beta therapy. The company aims to address a growing group of patients with serious liver damage linked to obesity and metabolic disorders.

Operations: Madrigal generates US$1.3b in revenue from delivering novel therapeutics for MASH, all currently from the United States.

Market Cap: US$11.1b

Investors watching Eli Lilly’s GLP-1 driven surge may find Madrigal Pharmaceuticals interesting because it sits at the intersection of obesity, metabolic disease and liver health, with Rezdiffra already commercial and recent earnings calls pointing to steady patient additions and broad physician adoption. The company’s long patent runway on Rezdiffra, moves into combination therapy with an oral GLP-1 agent, and upcoming international expansion are key parts of the story. At the same time, current losses, reliance on one main product, and payer pushback on pricing keep risk firmly on the table. Valuation metrics suggest the stock is priced below some estimates of fair value, while analyst targets indicate potential upside if execution and reimbursement hold up, particularly as GLP-1 use expands the MASH treatment pool.

Madrigal’s Rezdiffra story is gaining attention, yet the bigger question is whether the current pricing and single drug reliance truly fit the US$11.1b tag. Review the DCF valuation analysis for Madrigal Pharmaceuticals to see what the market might be missing.

Merck (MRK)

Overview: Merck is a global healthcare company that develops and sells prescription medicines, vaccines and animal health products, anchored by blockbuster cancer drug Keytruda and a wide range of treatments across oncology, cardiometabolic disease, infectious disease and vaccines.

Market Cap: US$315.6b

Merck sits in an interesting spot for investors watching Eli Lilly’s surge in obesity and metabolic treatments. The company has already tripled its late stage pipeline since 2021 and is leaning on partnerships and acquisitions in cardiometabolic disease while still relying heavily on Keytruda as its main growth engine. Recent results show revenue of US$16.6b in Q2 2026 and a higher 2026 sales outlook, yet profit margins have tightened and a large one off loss plus high debt and a stretched P/E keep risk on the table. For investors, the real question is whether Merck’s expanding pipeline and cardiometabolic ambitions can offset patent cliffs and pricing pressure while justifying today’s valuation multiples.

Merck’s expanding cardiometabolic pipeline and higher 2026 sales outlook could be masking the real story in its valuation and risk profile. Read the analysis report for Merck to see what might be hiding in plain sight.

Rhythm Pharmaceuticals (RYTM)

Overview: Rhythm Pharmaceuticals is a commercial stage biopharmaceutical company that develops IMCIVREE and next generation MC4R agonists to treat rare genetic and neuroendocrine obesity disorders such as POMC and LEPR deficiency obesity, Bardet Biedl and Alström syndromes, Prader Willi syndrome and hypothalamic obesity in the United States and internationally.

Market Cap: US$7.3b

Rhythm Pharmaceuticals sits at the heart of the obesity theme but focuses on patients that broad GLP 1 drugs miss. IMCIVREE is already FDA approved for several rare genetic obesity conditions, recent data in acquired hypothalamic obesity and Prader Willi syndrome point to a widening opportunity, and next generation assets like bivamelagon and RM 718 add another layer of potential. At the same time, the company still reports sizeable losses, depends heavily on a single commercial drug and carries execution risk as it expands into new indications and geographies. With Eli Lilly’s success pulling more investor attention to weight loss treatments, Rhythm offers a focused way to gain exposure to the genetic obesity niche. The key consideration for investors is whether its current valuation reflects both the upside and the vulnerabilities of that story.

Rhythm Pharmaceuticals sits at the crossroads of rare disease focus and the wider obesity story, yet the real accelerator could lie in how the market is framing its future. Review the analyst forecasts for Rhythm Pharmaceuticals before the next key twist emerges.

The stocks in this article are only a starting point, and the full Healthcare - Pharmaceutical Companies Focused on Metabolic and Obesity Treatments screener surfaces 12 more companies with equally compelling GLP 1, cardiometabolic and obesity focused narratives in the Healthcare - Pharmaceutical Companies Focused on Metabolic and Obesity Treatments screener. Use Simply Wall St to analyze these companies, filter for the specific catalysts and narratives that matter to you, and identify the highest conviction ideas that fit your own thesis.

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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.