The race to treat obesity and diabetes is shifting again after Eli Lilly pushed back approval plans for its next-generation obesity drug, retatrutide, to Q1 2027, even as phase 3 data showed weight loss of up to 22.6% and blood sugar benefits. This mix of regulatory delay and clinical progress can reshape expectations for companies exposed to these therapies. For investors, it creates a fresh reason to reassess risk, timing and potential rewards. The sections that follow break down how three stocks from our Obesity and Diabetes Drug Manufacturers screener are positioned in light of this news.
Madrigal Pharmaceuticals (MDGL)
Overview: Madrigal Pharmaceuticals focuses on treating metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease often linked to obesity and diabetes, through its liver-targeted drug Rezdiffra. The company develops therapies that act on thyroid hormone receptor beta in the liver, aiming to address fibrosis and long term liver damage
Operations: Madrigal generates US$1.1b in revenue from delivering novel therapeutics for MASH, all currently from patients in the United States
Madrigal Pharmaceuticals sits at the intersection of obesity treatments and liver disease, which is why Eli Lilly’s delay gives this stock fresh attention. Rezdiffra is already addressing a growing pool of MASH patients, with new US patents extending protection to 2045 and recent IP wins in F2 to F4c disease suggesting a broader, longer revenue stream. Analyst expectations for rapid earnings and revenue growth, along with price targets above the current share price, reflect that potential, but reliance on a single drug, payer pushback and rising competition from GLP-1 based regimens keep risk elevated. The key consideration for investors is how that mix of long dated exclusivity, expanding patient reach and funding needs could develop from here.
Madrigal Pharmaceuticals has long dated Rezdiffra patents and a single product focus, which can mask what really matters next. Get the full picture in the analyst forecasts for Madrigal Pharmaceuticals and see what the market might be missing
Corcept Therapeutics (CORT)
Overview: Corcept Therapeutics develops medicines that modulate cortisol, focusing on hard to treat endocrine, metabolic, oncologic, and neurologic disorders, including Cushing’s syndrome and conditions linked to obesity and diabetes
Operations: Corcept generates US$769.1m in revenue from the discovery, development, and commercialization of pharmaceutical products, all from patients in the United States
Market Cap: US$10.3b
Corcept Therapeutics provides exposure to obesity- and diabetes-related conditions from a different angle, targeting cortisol-driven disease with Korlym on the market and a pipeline that includes relacorilant and miricorilant for metabolic dysfunction-associated steatohepatitis. As Eli Lilly’s retatrutide timeline slips to 2027, Corcept’s focus on patients whose diabetes remains uncontrolled even on potent GLP 1 drugs, highlighted in CATALYST and GRATITUDE discussions, reflects an unmet need that major obesity drugs do not fully address. At the same time, reliance on Korlym, recent earnings pressure, and ongoing litigation and regulatory reviews keep risk elevated. The key consideration is how that mix of expanding indications, pricing pressure, and legal overhang compares with the growth expectations and risk profiles investors see elsewhere in this space.
Corcept Therapeutics may have cortisol science and MASH ambitions that investors are only half pricing in, yet Korlym reliance and legal questions still hang over the story. This is why the 1 key reward and 1 important warning sign could be the twist you did not expect
Protagonist Therapeutics (PTGX)
Overview: Protagonist Therapeutics is a biotech company that develops peptide based drugs, including Icotyde for plaque psoriasis, rusfertide for the rare blood disorder polycythemia vera, and a pipeline of oral and injectable candidates for immune related skin disease, obesity, and related metabolic conditions
Operations: Protagonist Therapeutics generates US$74.1m in revenue from its biotechnology activities, all from the United States
Market Cap: US$8.9b
Protagonist Therapeutics stands out in the obesity and diabetes theme because it combines a royalty stream from Icotyde with multiple shots on goal in metabolic and obesity drug development, at a time when Eli Lilly’s retatrutide delay is shifting attention to alternative pipelines. Analysts expect strong earnings and revenue growth, and the stock trades well below one estimate of its future cash flow value. However, the company is still loss making, carries funding risk from higher risk borrowing, and has seen recent insider selling. For investors, the key question is whether Icotyde traction and late stage rusfertide progress are enough to offset those financial and governance considerations as the peptide platform matures.
Protagonist Therapeutics may have more to its story than Icotyde royalties and rusfertide trials, with additional future potential that many investors may be underestimating. Get the fuller picture in the analyst forecasts for Protagonist Therapeutics
The three stocks covered here are just a starting point, as the full Obesity and Diabetes Drug Manufacturers screener on Simply Wall St surfaces 15 more companies with equally compelling narratives that many investors have not looked at closely yet, all accessible through the Obesity and Diabetes Drug Manufacturers screener. Use the Simply Wall St tools to identify and analyze the specific catalysts, financial health factors, and narrative drivers discussed here so you can focus on the ideas in this theme that align best with your own convictions.
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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
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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About NasdaqGS:MDGL
Madrigal Pharmaceuticals
A biopharmaceutical company, focuses on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH) in the United States
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Exceptional growth potential and undervalued
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