Rising against the trend! Why is the weight loss drug concept sector breaking out with an independent trend?

Ask AI · How does the rapid approval of Eli Lilly’s oral GLP-1 drug reshape the weight loss drug market landscape?

CNR Beijing, April 2 (Reporter Niu Guyue) On April 2, major A-share indices fluctuated and closed lower, with over 4,300 stocks in the red. However, the weight loss drug sector defied the trend and strengthened. Boosted by the news that Eli Lilly’s oral GLP-1 drug was quickly approved and listed by the FDA, this sector rose by 0.81% in a single day, with a total increase of 12.16% over the past five trading days. Stocks like Menarini and Shuanglu Pharmaceutical performed actively, attracting market attention to the oral weight loss drug industry chain.

Weight Loss Drug Concept Sector Reverses Decline and Rises

On April 2, the A-shares experienced a day of oscillation and adjustment, with major indices collectively closing lower. The Shanghai Composite Index closed at 3919.29 points, down 0.74%; the Shenzhen Component Index fell 1.6%; the ChiNext Index dropped 2.31%; and the STAR Market Index declined 2.56%. The total market turnover was 1.86 trillion yuan, shrinking by 167.1 billion yuan compared to the previous trading day. Over 4,300 stocks declined, while 1,049 stocks rose.

Against this backdrop, the weight loss drug sector bucked the trend and closed higher, becoming one of the market highlights of the day. According to Eastmoney Choice data, on April 2, the weight loss drug concept sector rose by 0.81%, with a turnover of 24.36 billion yuan. Within the sector, 20 stocks gained and 15 declined. During the trading session, the index once rose more than 2%, though the gains narrowed in the afternoon, it still remained in positive territory. Looking at a longer timeframe, the Eastmoney weight loss drug concept sector increased by 12.16% over the past five trading days.

In terms of individual stocks, many weight loss concept stocks performed actively, but divergence increased toward the close.

Menarini (603538.SH) rose 6.36%, with a daily turnover rate of 43.8%, a fluctuation amplitude of 15.2%, and a total trading volume of 3.9 billion yuan for the day. Over the past five trading days, it gained 18.81%, with 7 limit-ups within 10 trading days, for a total increase of 72.94%. Shuanglu Pharmaceutical (002038.SZ) led the sector with a 10% limit-up; Borui Medicine (688166.SH) closed up 6.77%; Deyuan Pharmaceutical rose 5.52%.

On the downside, stocks like Aimeike (300896.SZ), Zhifei Biological (300122.SZ), and Haichuang Pharmaceutical-U (688302.SH) saw the largest declines.

Regarding news, on April 1 (local time), the U.S. Food and Drug Administration (FDA) officially approved Eli Lilly’s oral GLP-1 drug for market listing. This approval came just months after Eli Lilly submitted the application to the FDA, which was fast-tracked through a “priority review” channel for “national priority drugs.” Eli Lilly announced that the drug would begin shipping on April 6 and plans to be approved in over 40 countries this year. Boosted by this news, Eli Lilly’s U.S. stock price surged over 6% intraday overnight, closing up about 3.78%.

Institutions Focus on Investment Opportunities in the Industry Chain

Several institutions have issued research reports on the future prospects of weight loss drugs.

Caitong Securities pointed out in its weekly investment strategy report for the pharmaceutical and biological industry that the opportunity for oral weight loss drugs is imminent. Compared to injectable GLP-1 and oral peptides, oral small molecules have significant advantages, including greatly expanding the patient population (for weight maintenance and needle-phobic patients), supply chain stability, and avoiding shortage risks. With the approval and listing of oral weight loss drugs, the industry chain is expected to usher in substantial investment opportunities. Caitong Securities also noted that the AACR annual meeting will be held from April 17-22 in San Diego, USA, with over 100 Chinese pharmaceutical companies participating and nearly 400 research results presented. The conference is expected to boost innovation drug sentiment.

Huafu Securities believes that Eli Lilly’s oral weight loss drug approval is the most critical industry catalyst at present and recommends paying attention to industry chain investment opportunities. The research report states that Eli Lilly’s oral weight loss drug has driven a global small-molecule GLP-1 R&D boom, with domestic companies like Kanglong Chemical, Kelun-Yin, and Chengda Pharmaceutical deeply involved in the supply chain. The investment logic for innovative drugs focuses on clinical data validation, unexpected positive BD collaborations, and frontier technology platforms (such as small nucleic acids, molecular gels, and gene therapy) with elastic potential.

Huayuan Securities also reminds that with continuous innovation and progress in China’s pharmaceutical industry, there is a risk of new competitors entering, which could intensify competition. They also caution about policy changes and the risk of industry demand falling short of expectations.