GLP-1 Stocks Surge 130% in Five Years - Beating Global Markets

- Josh Gilbert, Market Analyst at eToro

If you’ve followed healthcare headlines in recent years, you’ve likely heard of Ozempic, the diabetes medication now celebrated for its remarkable weight-loss results. Behind this breakthrough is Danish pharmaceutical giant Novo Nordisk, a company that has redefined not just diabetes care but also investor expectations in healthcare. GLP-1 drugs like Ozempic are no longer just treatments—they are market-moving innovations that have reshaped the perception of what pharmaceutical companies can deliver.

From Pharmaceuticals to High-Growth Stories

Traditionally, pharmaceutical companies were seen as stable, slow-growing businesses. But the emergence of GLP-1 treatments has flipped that narrative. We analyzed the performance of companies leading this revolution and found returns more reminiscent of Silicon Valley tech giants than conventional pharma. By constructing two baskets, one of GLP-1 specialists (Novo Nordisk, Eli Lilly, Sanofi, Teva, Hikma) and another of traditional peers (Novartis, Johnson & Johnson, GlaxoSmithKline, AbbVie, Bayer), the results were striking. Over five years, the GLP-1 basket soared 130%, compared with just 42% for traditional pharma and well above major indices like the S&P 500 (+98%).

Navigating Recent Volatility

What makes this story even more compelling is the volatility seen over the past year. GLP-1 stocks have faced a correction, with the basket down 12% and Novo Nordisk falling 50%. Meanwhile, non-GLP-1 companies gained 10%, and the S&P 500 rose 16%. Despite the recent pullback, Eli Lilly has emerged as a standout performer with a five-year gain of 486%, while Teva has more than doubled in value. Novo Nordisk still climbed 76%, underscoring its enduring influence, even as Hikma lagged with a 28% decline.

A Market Poised for Growth

The global appetite for weight-loss drugs is immense. By 2030, the market is expected to reach USD $130 billion, implying nearly 50% annual growth from today’s levels. Yet the last year has been a reality check. Soaring valuations and slower-than-expected profit growth prompted firms like Novo Nordisk to scale back operations, cutting 9,000 jobs in the process. Still, the company remains a dominant force, offering patients life-changing therapies that are transforming diabetes and obesity management worldwide.

Competition Heats Up

Novo Nordisk’s leadership is no longer unchallenged. Eli Lilly, a larger and more diversified healthcare company, has seen its shares surge thanks to Zepbound, a diabetes drug showing strong weight-loss results. This growing competition reflects the enormous stakes: pharmaceutical and biotech firms are racing to bring the next breakthrough to market. Predicting which company will dominate is difficult, but the sector’s potential is undeniable, attracting global attention from investors and innovators alike.

Beyond the Stock Market

The implications of GLP-1 drugs extend far beyond share prices. Rising life expectancy has driven a surge in diabetes prevalence, particularly in the UAE, where over 20% of adults live with the condition. GLP-1 therapies are reshaping healthcare delivery and even daily life. In Dubai, some restaurants are now offering smaller portions to accommodate individuals taking appetite-suppressing medications, a tangible sign of how these drugs are influencing society.

The Long-Term Investment Case

For investors, GLP-1 treatments remain one of the most compelling stories in modern healthcare. While the sector has recently undergone a recalibration, the larger trend indicates a rapidly growing global demand. From Europe to the Middle East, companies leading this revolution are at the forefront of one of the most transformative periods in healthcare in decades. With innovation, market growth, and patient impact converging, GLP-1 drugs are shaping both the future of medicine and the next wave of strategic investment opportunities.