The obesity drug market is creating trillion-dollar winners, but you don't have to pay premium prices for exposure. Pfizer (PFE +0.10%) and Viking Therapeutics (VKTX 2.41%) are both relatively inexpensive compared to their opportunities in obesity. One offers a high-yield blue chip that just spent $10 billion entering the space, while the other is a pure-play biotech with late-stage programs in both injectable and oral weight-loss drugs.
Here's why these two healthcare stocks scan as no-brainer buys right now.
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The dividend giant is making a $10 billion acquisition
Pfizer scrapped its homegrown obesity program in April 2025 after its oral GLP-1 drug candidate -- a type of medication that mimics a natural hormone to reduce appetite and regulate blood sugar -- showed liver safety concerns in mid-stage testing. Rather than retreat, management went shopping.
In October 2025, Pfizer acquired Metsera for up to $10 billion after a bidding war with Novo Nordisk, securing a once-monthly injectable GLP-1 that delivered roughly 11% body mass reduction over 12 weeks in early trials. That's competitive territory considering Metsera's drug requires only one injection per month versus weekly shots for current market leaders.
NYSE: PFE
Key Data Points
The acquisition comes as obesity treatments evolve from a $30 billion market in 2024 toward an estimated $130 billion opportunity by 2030. Pfizer is paying premium prices to enter late, but the company's balance sheet can absorb the cost while generating substantial income for shareholders.
The stock currently yields roughly 6.8%, backed by a quarterly dividend of 43 cents per share that management has raised steadily even through the COVID-19 revenue cliff. With shares trading at roughly 8 times projected 2027 earnings -- less than half the valuation of peers like Johnson & Johnson -- investors are getting paid to wait while Pfizer rebuilds its growth engine.
Management raised 2025 earnings guidance three times this year, now targeting $3 to $3.15 per share as cost-cutting programs deliver ahead of schedule. The company expects to remove more than $7 billion in annual expenses by 2027, which should support both the dividend and investments in the Metsera pipeline.
The pure-play acquisition candidate
Viking Therapeutics took a different path to the same destination. The company's lead candidate, VK2735, is a dual GLP-1/GIP agonist, meaning it activates two complementary hormone pathways simultaneously, rather than just one. GIP, or glucose-dependent insulinotropic polypeptide, works alongside GLP-1 to enhance the appetite-suppressing effect.
NASDAQ: VKTX
Key Data Points
Viking's injectable version delivered 15.7% mean weight loss over 13 weeks in phase 2 testing and entered two phase 3 trials -- called VANQUISH-1 and VANQUISH-2 -- in June 2025. Enrollment has moved unusually fast, with the first trial on track to complete patient recruitment by year end.
What sets Viking apart is its oral formulation of the same drug. The company reported a 12.2% weight loss over 13 weeks in a mid-stage oral study, but the stock collapsed by more than 30% on the news, as investors focused on discontinuation rates of 28% to 38% at higher doses due to nausea and vomiting.
Management attributes most side effects to aggressive initial dosing and plans to start patients on lower doses with slower increases in future studies. If Viking can demonstrate tolerability improvements, an oral weight-loss drug could command premium pricing given overwhelming patient preference for pills over injections.
With $715 million in cash and minimal debt, Viking has several years of runway to complete its phase 3 programs without needing to raise capital. Yet the company's $4.3 billion market capitalization looks modest compared to recent obesity acquisitions.
Pfizer paid up to $10 billion for Metsera's less advanced programs. Roche committed $5.3 billion to a different obesity mechanism. AstraZeneca paid $185 million upfront with up to $2 billion in milestones for an oral GLP-1 still in phase 2 testing. Viking's combination of late-stage injectable data and oral optionality makes it a high-priority target for any pharmaceutical company trying to compete with Eli Lilly and Novo Nordisk.
The fast-follower advantage
The obesity drug market won't be a winner-take-all market. As the addressable patient population expands from severe obesity into overweight management and metabolic health, there's room for multiple drugs with different dosing schedules, side effect profiles, and delivery mechanisms.
Pfizer brings commercial muscle and deep pockets to a market it initially missed. Viking offers a shortcut for big pharma to close the gap with today's leaders. Both stocks reflect pessimism that seems overdone given the market's growth trajectory and the premium valuations that late-stage obesity assets are commanding in acquisition deals.
