Amplify Weight Loss Drug & Treatment ETF (THNR) 1st Quarterly Commentary 2025

The Amplify Weight Loss Drug & Treatment ETF (THNR) seeks investment results that generally correspond to the performance of the VettaFi Weight Loss Drug & Treatment Index. THNR provides access to global companies involved in the pharmaceutical manufacturing of GLP-1 agonist or enablers of such businesses. 

THNR returned -4.85% on a net asset value (NAV) compared to its underlying benchmark, the VettaFi Weight Loss Drug & Treatment Index at -4.65% for the first quarter (Q1) 2025.  View Standardized Performance

The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance, visit AmplifyETFs.com/THNR. Brokerage commissions will reduce returns. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price is the last price at which the fund traded.

Generic GLP1 Milestone Amid Goernment Insurance Coverage Halt

The FDA approved the first generic version of liraglutide (Victoza) for improving glycemic control in adults and pediatric patients aged 10 years and older with type 2 diabetes. This marks a first significant step towards making GLP-1 medications more accessible and affordable. But the Trump administration has halted Biden’s proposal to let Medicare and Medicaid cover these drugs, which is a setback for those under treatment.

More Use Cases Beyond Weight Loss

Multiple studies have found that GLP-1 medications, like Ozempic and Wegovy, may have benefits beyond weight loss, including a reduced risk of Alzheimer's disease, dementia, and other health conditions. Recent research also indicates a potential link between GLP-1 medications and a lower risk of suicidal ideation, suicide attempts, and self-harm.  And another new study shows a lower risk of aspiration pneumonia in patients taking GLP-1 medications.

Oral GLP1 Race

Many companies are developing oral GLP1 formulations to increase convenience, reduce cost, and improve adherence.  Orforglipron, a small-molecule GLP-1 drug, is in phase III trials and could be approved in the coming years. Lilly expects to complete phase III trials in 2025, and orforglipron could receive US regulatory approval in 2026.  Novo Nordisk is also developing an oral version of semaglutide.  Other drugmakers including Pfizer and Roche, as well as smaller companies like Structure Therapeutics, Terns Pharmaceuticals and Viking Therapeutics, also have oral weight-loss drugs in earlier stages of development.

Next Generation Drug from Lilly

A new experimental drug from Eli Lilly helped patients with obesity lose an average of 24% of their body weight over 48 weeks on the highest dose in a mid-stage study, the most weight loss seen yet in a new class of drugs that’s revolutionizing the field. The medicine, called retatrutide, had similar side effects – mainly gastrointestinal– as approved drugs in the class, including Ozempic, Wegovy and Mounjaro.  Retatrutide adds a third target, glucagon, giving it the moniker “triple G.” Patients taking the medicine experienced benefits beyond weight loss, the researchers reported, including lowered blood pressure – some patients were able to stop taking a blood pressure medication. The drug also shows promise for non-alcoholic fatty liver disease.

Top performers contributing to returns include Roche (+20%) and Amgen (+21%)

Swiss drugmaker Roche broadens its GLP1 drug portfolio by agreeing to pay Zealand Pharma $1.65 billion to license the company’s GLP1 drug. The deal gives Roche access to a type of experimental drug known as an amylin analog, a class the Swiss pharmaceutical company didn’t obtain when it acquired Carmot Therapeutics 15 months ago. Roche plans on testing petrelintide with one of those drugs, for which Zealand could reimburse Roche $350 million. Amgen announced it has started two critical late-stage trials for its experimental weight loss injection MariTide, another step in its bid to enter the booming obesity drug market. MariTide is a monthly injection that investors hope could compete against existing weight loss drugs from Novo Nordisk and Eli Lilly which are weekly injectables.

Detractors on performance for the period included Novo Nordisk (-18%) and West Pharmaceuticals (-32%)

Premier GLP-1 drug manufacturer Novo Nordisk has shed 50% of its value since its peak valuation in June 2024.  The company reported disappointing phase 3 data for Novo Nordisk’s most important late-stage pipeline candidate, CagriSema which was meant to leapfrog Lilly’s Zepbound and offer patients even steeper weight loss and perhaps fewer tolerability issues. Other issues for Novo include Medicare negotiations for semaglutide and tariff concerns as Novo does some manufacturing in Europe.  Healthcare products company West Pharmaceuticals reported earnings results that exceeded expectations, but revenue guidance was well below estimates. West Pharma is pulling away from two large customers who make next-generation continuous-glucose-monitoring devices and instead focusing on the opportunity for West Pharma in the GLP-1 space. The company makes self-injection devices for those drugs, which currently only exist in injectable form. West Pharma provides the plungers needed by the big players.

Visit the THNR fund page for more information, including fact sheets, insights, index methodology, and regulatory documents.